Rheinmetall expands into Spanish market with Expal acquisition

Rheinmetall AG concluded part of the purchase agreement this week with MaxamCorp. Holding S.L. to acquire the entire share capital of Expal Systems S.A, a Madrid-based ammunition manufacturer.

The completion date of the purchase is expected in the summer of 2023, although the agreement is still subject to approval by the competition authorities and other regulatory checks.

The value of the acquisition is based on an enterprise value of €1.2billion.

Through the purchase, Rheinmetall hopes to bolster its weapon, ammunition and propellent business in a sustained way. 

Expal Systems produces a wide range of products including propulsion systems, counter-IED equipment and underwater mines. Crucially, Rheinmetall expects a large increase in demand for ammunition, propulsions and charges from numerous nations as a result of the ongoing war in Ukraine.

Expal’s 105mm and 155mm field artillery ammunition are already in service with over 30 countries and are qualified and approved for use in all NATO howitzers. The company also produces ammunition for air- and sea-based artillery systems.

Support from sympathetic nations in the form of military materiel donations to Ukraine has been consistent since the start of the war.

This week alone, Sweden has announced its largest package of military assistance, the EU launched the European Union Military Assistance Mission and the White House submitted a request to US Congress for $38 billion in aid.

Through this acquisition, Rehinmetal will increase its preparedness to meet increased demand for ammunition throughout the war and the following stockpile replenishment period.