RENK, a Germany-based maker of automatic transmissions and gear units for military vehicles, has agreed to acquire Combat Propulsion Systems and Magnet-Motor businesses of L3Harris Technologies (NYSE: LHX) for an undisclosed sum to create a combat mobility platforms developer with key operations in the U.S. and Europe.
RENK said Monday it expects the transaction to close in the second half of 2021, pending regulatory approvals.
CPS supplies transmissions and engines for armored vehicles in the U.S. and international markets. The company has about 350 employees and supports the U.S. Army in meeting requirements.
Magnet-Motor designs and develops hybrid drive systems and electric power supplies for military applications.
“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,” said RENK CEO Florian Hofbauer. “Our strategic acquisition of CPS ideally positions us for the Next Generation Combat Vehicle programs.”
The transaction coincides with CAE‘s (NYSE: CAE) announcement that it would buy the military training segment of L3Harris through a $1.05 billion deal as part of efforts to accelerate its growth strategy in defense and security markets.