Rheinmetall sells civil division to AEQUITA, pivots to pure defense focus
German defense contractor Rheinmetall signed a deal on June 3, 2026, to sell its civil division (Rheinmetall Power Systems) to Munich-based industrial group AEQUITA for €350 million. The sale, expected to close by Q4 2026 pending antitrust approval, marks Rheinmetall’s complete pivot to high-margin military and security business amid booming demand since the Ukraine war. AEQUITA will retain all ~6,250 employees and brands like Pierburg, Kolbenschmidt, and Motorservice. Excluded assets include a joint venture and a Spanish plant transitioning to military production.
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Rheinmetall Sells Civilian Power Systems Division to Focus on Defence
Rheinmetall has finalized the sale of its civilian Power Systems division to Munich-based industrial group AEQUITA for a provisional 350 million euros. The division, which generated around 2 billion euros in sales last year and employs roughly 6,250 people, will continue operating under its established brands Pierburg, Kolbenschmidt, and Motorservice. The transaction is expected to close in the fourth quarter of 2026 pending regulatory approvals. This sale is a decisive step in Rheinmetall's long-signaled transformation towards higher-margin defence business, accelerated by Russia's invasion of Ukraine. Three German sites of KS Huayu AluTech are excluded and will remain as a joint venture, while Dermalog SensorTec will be folded into Rheinmetall's Weapon and Ammunition division. A Spanish plant will transition from civilian to full military production.
UK Defence JournalRheinmetall sells civilian Power Systems division to AEQUITA for 350 million euros
Rheinmetall has finalized the sale of its civilian Power Systems division to Munich-based industrial group AEQUITA for a provisional 350 million euros, marking a decisive step in its transformation toward a pure-play defence company. The division, which generated around 2 billion euros in sales last year, includes well-known automotive brands Pierburg, Kolbenschmidt, and Motorservice. AEQUITA intends to retain all 6,250 employees and run the business as a standalone entity. The deal is expected to close in Q4 2026 pending regulatory approvals. Rheinmetall CEO Armin Papperger called it a significant milestone, as the company focuses on higher-margin defence markets boosted by the Ukraine conflict. Some sites, including KS Huayu AluTech and Dermalog SensorTec, are excluded from the sale, with the latter being folded into Rheinmetall's Weapon and Ammunition division. A Spanish plant will transition from civilian to military production.
UK Defence JournalRheinmetall to Divest Automotive Business for €350m to Aequita
German defence and automotive group Rheinmetall has agreed to sell its automotive division, Power Systems, to Munich-based investment firm Aequita for a provisional €350 million ($406.8 million). The deal covers 100% of Power Systems shares and is expected to close in Q4 2026, pending regulatory approvals. The division recorded approximately €2 billion in sales in 2025 and has been reported as a discontinued operation since Q4 2025. The sale is part of Rheinmetall's strategic shift to become a pure-play defence company, following earlier disposals of its piston businesses in 2023 and 2024. Aequita intends to retain all roughly 6,250 employees worldwide, and the business will continue operating under existing brands including Pierburg, Kolbenschmidt, and Motorservice. Excluded from the deal are three German sites of KS Huayu AluTech and Rheinmetall's stake in Dermalog SensorTec. Pierburg's facility in Abadiano, Spain, will remain under Rheinmetall ownership during a transition period.
Yahoo FinanceRheinmetall sells struggling auto division to focus on defense
German defense contractor Rheinmetall announced the sale of its struggling Power Systems automotive unit to Munich-based investment firm Aequita for a provisional €350 million ($406 million), with the deal expected to close in the fourth quarter of 2026. The sale marks a key step in Rheinmetall's strategy to focus entirely on defense, a sector that has boomed since the Ukraine war began. The company cited further deterioration in the automotive sector as impacting the final agreement terms. The sale will trigger additional impairment charges of about €200 million, following a €350 million non-cash charge booked in December 2025. Aequita plans to retain the unit's approximately 6,250 employees worldwide and integrate it into its automotive division, which will generate around €5 billion in revenue. Excluded from the sale are three German locations of aluminium casting specialist KS Huayu AluTech, a stake in automotive sensor joint venture Dermalog SensorTec, and Pierburg's Abadiano plant in Spain.
Defense NewsRheinmetall sells struggling auto division to focus on defense
German defense contractor Rheinmetall announced the sale of its struggling Power Systems automotive unit to Munich-based investment firm Aequita for a provisional €350 million ($406 million), with the deal expected to close in the fourth quarter of 2026. The sale marks a final step in Rheinmetall's strategic pivot to focus entirely on defense, a sector that has boomed since the start of the Ukraine war due to increased European defense spending. The unit was classified as a discontinued operation in December 2025, and the sale will trigger additional impairment charges of about €200 million, following a previous non-cash charge of €350 million. Aequita plans to retain the unit's roughly 6,250 employees worldwide and integrate it into its automotive division, which will generate approximately €5 billion in revenue. Excluded from the sale are three German locations of aluminium casting specialist KS Huayu AluTech, a stake in automotive sensor joint venture Dermalog SensorTec, and Pierburg's Abadiano plant in Spain.
Defense NewsRheinmetall sells struggling auto division to focus on defense
German defense contractor Rheinmetall announced the sale of its struggling automotive unit, Power Systems, to Munich-based investment firm Aequita for a provisional €350 million ($406 million). The deal, expected to close in the fourth quarter of 2026, marks a strategic shift to focus entirely on defense amid booming demand since the Ukraine war. The sale will trigger additional impairment charges of about €200 million, following a €350 million non-cash charge in December 2025. Aequita plans to retain the unit's roughly 6,250 employees worldwide and integrate it into its automotive division, which will generate approximately €5 billion in revenue. Excluded from the sale are three German locations of KS Huayu AluTech, a stake in Dermalog SensorTec, and Pierburg's Abadiano plant in Spain.
Defense NewsRheinmetall Sells Civil Division to AEQUITA, Focuses on Defense
Rheinmetall, the German defense and automotive conglomerate, has signed a purchase agreement to sell its civil division, Rheinmetall Power Systems, to the Munich-based industrial group AEQUITA for 350 million euros. CEO Armin Papperger described the sale as a historically significant step, as the company shifts its focus entirely to high-margin military business. The division, which includes brands like Pierburg, Kolbenschmidt, and Motorservice, employs approximately 6,250 people worldwide, all of whom will be retained by AEQUITA. The sale is expected to close by the fourth quarter of 2026, pending antitrust approval. Exceptions include the KS Huayu AluTech joint venture, which will remain in the Rheinmetall Group as a discontinued operation, and the Dermalog SensorTec investment, which will be integrated into the weapons division. The Spanish Pierburg S.A. plant in Abadiano will transition from civilian to military production.
CPM Defence Network – News: Verteidigung und WehrtechnikRheinmetall Sells Civil Division to AEQUITA for 350 Million Euros
Rheinmetall CEO Armin Papperger announced the sale of the company's civil division, formerly Rheinmetall Power Systems, to Munich-based industrial group AEQUITA for 350 million euros. The deal, signed on June 3, 2026, marks a strategic shift for Rheinmetall to focus exclusively on high-margin military and security business, including expansion into air, sea, and space domains. AEQUITA will retain all approximately 6,250 employees and continue operating under the brand identities Pierburg, Kolbenschmidt, and Motorservice. Exceptions include the KS Huayu AluTech joint venture, which will remain in the Rheinmetall Group as a discontinued operation, and Dermalog SensorTec GmbH, which will be integrated into the Weapon and Ammunition Division. The Spanish Abadiano plant will transition from civilian to military production. The sale is subject to antitrust approval and expected to close by Q4 2026.
CPM Defence Network – News: Verteidigung und WehrtechnikRheinmetall Sells Civil Division to AEQUITA, Pivots to Pure Defense Focus
Rheinmetall, the German defense and automotive conglomerate, has signed a purchase agreement to sell its remaining civil division, Rheinmetall Power Systems, to the Munich-based industrial group AEQUITA for 350 million euros. CEO Armin Papperger described the sale as a historically significant step, marking the company's complete pivot to high-margin military and security business. The deal includes approximately 6,250 employees worldwide and retains brand identities such as Pierburg, Kolbenschmidt, and Motorservice. The sale is expected to close by the fourth quarter of 2026, pending antitrust approval. Certain assets, including a joint venture and a Spanish plant, will remain with Rheinmetall for transitional or permanent integration into its defense operations.
CPM Defence Network – News: Verteidigung und Wehrtechnik