Rheinmetall AG RHM, -1.20% said it has agreed to acquire Spanish ammunition maker Expal Systems SA for an enterprise value of 1.2 billion euros ($ 1.24 billion).
Expal , which is a subsidiary of Spanish explosives manufacturer Maxam, has scope for potential annual sales of EUR700 to EUR800 million, the German defense company said Sunday.
The deal, which is subject to approval by the competition authorities, is expected to close in the summer of 2023, it said.
“In making this acquisition, the Dusseldorf-based technology enterprise is seeking to bolster its core weapon, ammunition and propellant business in a sustained way, with increased spare production capacity and an expanded product portfolio the prime focal points,” Rheinmetall said.
Write to Maitane Sardon at maitane.sardon@wsj.com