Rheinmetall to Sell Struggling Power Systems Division to Aequita for €350 Million After €550 Million in Impairments

Rheinmetall will sell its Power Systems division to Munich-based investment firm Aequita for a provisional €350 million, or $406 million, the company said on Wednesday. The transaction is expected to close in the fourth quarter of 2026, with the final price subject to potential adjustment at closing.

Rheinmetall has been seeking a buyer for the division since 2025 and classified it as a discontinued operation in December 2025.

The sale will trigger additional impairment charges of about €200 million, after the company booked a non-cash charge of around €350 million in December linked to the business. “The further deterioration in the business situation in the automotive sector had an impact on the circumstances and terms of the final agreement,” Rheinmetall said in a statement. The announcement was made in Berlin.

Aequita plans to retain the roughly 6,250 employees in the Power Systems unit worldwide. “The company is an excellent addition to our automotive division, which will now generate revenues of approximately €5 billion,” said Axel Geuer, chairman and co-CEO of Aequita. He added that Aequita would support the business’s long-term development and seek synergies across its automotive portfolio.

Excluded from the sale are three German locations of aluminium casting specialist KS Huayu AluTech, a stake in automotive sensor joint venture Dermalog SensorTec, and car parts maker Pierburg’s Abadiano plant in Spain. Rheinmetall’s defense business has grown rapidly since the start of the Ukraine war as Europe increases military spending.

Aequita is an investment firm that buys and restructures companies.