Alston & Bird client Renk AG has signed a definitive agreement to acquire the Combat Propulsion Systems (CPS) and Magnet-Motor GmbH (MM) businesses from defense contractor L3Harris Technologies Inc. for $400 million in cash.
Based in Muskegon, MI, CPS manufactures engines and transmissions for tracked and wheeled military vehicles in the U.S. and globally. MM develops and designs high-performance electric power supplies and hybrid drive systems for military applications and is located in Starnberg, Germany.
When completed, the acquisition will make Renk a global leader in developing and supplying combat mobility solutions, with key operations in Europe and the U.S.
The acquisition is expected to close in the second half of 2021 and is subject to customary closing conditions and regulatory approval.
Advising Renk on the proposed transaction is an Alston & Bird team led by partner James Sullivan (Corporate & Business Transactions), partner Jason Waite and senior associate Helen Galloway (International Trade & Regulatory), partner Clare Draper (Labor & Employment), partner Kyle Woods (Employee Benefits & Executive Compensation), partner Andy Howard (Government Contracts), senior associate Gosselin, Ronnie and associate Jessica Williams-Vickery (Environment, Land Use & Natural Resources), and partners Adam Biegel and John Snyder (Antitrust).