Rheinmetall is acquiring the naval division of Lürssen Group for approximately €2 billion, aimed at expanding its naval capabilities and increasing revenue in the defense sector.

Information on the Target

Rheinmetall is strategically expanding its operations by acquiring the naval division of Bremen-based Lürssen Group, a venture estimated at approximately €2 billion. This acquisition includes four shipyards located in northern Germany and several international facilities, which together employ about 2,100 personnel. In 2024, this unit reported a revenue of roughly €1 billion, and the management is projecting an EBITDA of around €300 million by 2027, anticipating a margin increase from the current 10% to 15% by 2030.

The naval division will focus primarily on naval munitions, emphasizing rocket motors and final assembly, sectors poised for significant global demand accompanied by extended lead times. With a robust operational base, Rheinmetall marks its entry into shipbuilding by enhancing its capabilities in the defense sector.

Industry Overview in Germany

Germany's defense industry is witnessing a pivotal evolution, driven by increasing geopolitical tensions and the subsequent demand for enhanced naval capabilities. The country's shipbuilding segme