Rheinmetall is acquiring the naval division of Lürssen Group for approximately €2 billion, aiming to strengthen its naval defense capabilities and capitalize on growing market demand.

Information on the Target

Rheinmetall is a prominent defense technology company based in Germany. The firm has announced the acquisition of the naval division of the Bremen-based Lürssen Group, which is expected to finalize in early 2026. The naval division operates four shipyards in northern Germany and holds several international locations. Approximately 2,100 personnel are employed at these sites, and the division generated around €1 billion in revenue in 2024. Rheinmetall's management aims to achieve an EBITDA of roughly €300 million by 2027, with plans to improve the EBITDA margin from 10% to 15% by 2030.

Through this acquisition, Rheinmetall seeks to expand its naval capabilities, particularly focusing on naval munitions such as rocket motors and their final assembly. The decision is strategic, as global demand in these areas remains high, and lead times can extend to several years, presenting a lucrative market opportunity for the company.

Industry Overview in Germany

The defense industry in Germany is undergoing significant changes, driven by geopolitical dynamics and increased emphasis on national security. Historically known for its robust engineering and technology sectors, German