Globally active RENK Aktiengesellschaft (“RENK”) signed an agreement to acquire the Combat Propulsion Systems business (“CPS”) and Magnet-Motor GmbH (“MM”) from L3Harris Technologies Inc. (“L3Harris”). The transaction is subject to regulatory approvals and is expected to close in H2|2021.
When the acquisition is completed, RENK will create a globally leading developer and supplier of combat mobility solutions with key operations in Europe and the USA, while combining state-of-the-art technologies of RENK, the previously acquired Horstman Group, CPS and MM.
CPS is a well-established supplier of transmissions and engines in the U.S. and international armored vehicle market. It is a leading player to meet the current and future needs of the U.S. Army. By leveraging this footprint and its existing 350 employees through additional technology solutions from RENK, CPS can expand its leading position with international armed forces.
MM is a leader in the development and design of high-performance electric power supplies and hybrid drive systems for military applications and is already cooperating with RENK on key strategic programs to provide the next generation of hybrid drive solutions.
RENK CEO Florian Hofbauer says: “We are pleased that RENK will gain a strong presence in the U.S. armored vehicle market, a market with sales prospects of around $10 billion annually. Our strategic acquisition of CPS ideally positions us for the Next Generation Combat Vehicle programs.”
CPS General Manager Ted Trzesniowski comments: “With RENK, we have the technology leader on our side whose edge provides us with important strategic advantages. Together, we will be better positioned than ever to capitalize on promising market opportunities in the U.S. and internationally.”