Rheinmetall has signed an agreement to sell its civilian Power Systems division to the Munich-based industrial group AEQUITA, marking a key step in its strategic realignment towards defence. The transaction, expected to close in the fourth quarter of 2026, subject to regulatory approvals, involves the sale of 100% of the division for a provisional purchase price of €350 million, subject to customary adjustments.
The move reflects Rheinmetall’s continued shift towards military customers and security agencies, alongside the expansion of its technological portfolio across air, sea and space domains. With this agreement, the company completes a major step in its exit from the automotive supplier business.
The Power Systems division generated approximately €2 billion in sales in 2025 and has been classified as a discontinued operation since the fourth quarter of that year. The divestment follows Rheinmetall’s earlier sale of its piston operations in 2023 and 2024.
AEQUITA intends to retain all approximately 6,250 employees across the acquired businesses. The division will operate as an independent entity, with established brands including Pierburg, Kolbenschmidt, and Motorservice continuing in the market.
“This is a significant milestone in the company’s history. We are focusing on the high-margin business with military customers, where we have excellent growth opportunities. Our stated objective was to place our civilian business operations in capable hands. We have found an excellent buyer in AEQUITA,” says Armin Papperger, CEO of Rheinmetall AG. “The internationally successful industrial holding company combines extensive experience in the industrial and automotive sectors with a focus on entrepreneurship, transformation and a long-term perspective.”
“This makes AEQUITA the ideal partner to work with the Power Systems management team to implement the strategy that has been developed and to ensure the long-term success of the Kolbenschmidt and Pierburg brands in the market,” explains Marcus Gerlach, lead negotiator for Rheinmetall AG.
“We are very proud that Rheinmetall has chosen AEQUITA as the new owner of the Power Systems division. The company is an excellent addition to our Automotive division, which will now generate revenues of approximately €5 billion. In the years to come, our focus will be on actively supporting the long-term, successful and sustainable development of the company. This also involves realising synergies within our automotive portfolio,” says Dr Axel Geuer, Chairman and Co-CEO of AEQUITA.
Certain assets are excluded from the transaction. The German sites of KS Huayu AluTech will remain within Rheinmetall as a joint venture in the medium term. The stake in Dermalog SensorTec will be retained and integrated into the Weapon and Ammunition division, while Pierburg S.A.’s Abadiano plant in Spain will remain with Rheinmetall and transition to military production following a temporary hybrid phase.
