Rheinmetall expands into Spanish market with Expal acquisition
Rheinmetall's buyout of Expal adds to the company's portfolio in the fields of fuses, rocket propulsion, ammunition and other forms of armament. (Photo: Expal Systems)
Rheinmetall is preparing for an increased demand for materiel such as ammunition, propulsion and charges with the acquisition of Expal Systems.
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.
More from Defence Notes
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
![Can the US overcome Russian and Chinese nuclear capabilities?]()
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
