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According to the announcement, the Düsseldorf MDAX group is buying Spain’s Expal Systems SA. The enterprise value of Expal is 1.2 billion euros. Rheinmetall plans to close the transaction in the summer of 2023.
“With the acquisition, the Düsseldorf-based technology group aims to secure its core businesses in the fields of weapons, ammunition and propulsion systems in the long term, with a focus on expanding available production capacities and expanding the product portfolio,” continued Rheinmetall AG. All Expal operational locations must be preserved.
Expal expects an annual turnover of around 400 million euros for the 2022/23 financial year. The total capacity of the company is a possible annual turnover of 700 million to 800 million euros. Rheinmetall achieved a turnover of almost 5.7 billion euros last year.
Rheinmetall Shares Expand – Chart Gets Brighter and Brighter
On Monday, a purchase by Rheinmetall was welcomed by investors in the arms group. Via XETRA, the Rheinmetall share temporarily rose by 4.85 percent to 173.10 euros. At times, they topped the MDAX, up 4.6 percent to EUR 172.65, and tested the 200-day moving average, which is attracting a lot of investor attention as an indicator of longer-term trend.
Rheinmetall wants to expand the ammunition business with an acquisition of the Spanish ammunition producer Expal Systems. The agreed purchase price is based on an enterprise value of 1.2 billion euros, the group announced on Sunday.
Expal is a good fit for Rheinmetall, delivering production capacity on time before demand is expected to increase, Berenberg Bank analyst George McWhirter wrote in a study published Monday. The purchase price seems very high, but that is put into perspective given the high profitability and strong growth prospects of the Spaniards.
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