A global manufacturer in the defense market is creating a new entity with its American headquarters in Muskegon via an acquisition of a combat technology company.
Augsburg, Germany-based RENK Group acquired Melbourne, Florida-based L3Harris Technologies Combat Propulsion Systems for about $400 million in cash to create RENK America, which will convert L3Harris’s 1.2 million-square-foot facility at 76 S. Getty St. in Muskegon into its headquarters.
The new company will provide mobility solutions to the U.S. and allied nations. It also will become the U.S. center of excellence for the RENK Group.
“Becoming part of the RENK Group enables us to reinforce our mission of supporting the U.S. Army and our allies,” said Ted Trzesniowski, RENK America CEO. “The new organization — strengthened by RENK Group’s advanced technology and resources — will further enhance our combat mobility systems to offer the best value to customers and ideally position us for future platforms.”
RENK America will add to the RENK Group’s global capacity for research and development, manufacturing and service. RENK America products currently power longtime defense workhorses such as the Bradley Fighting Vehicle and the M88 Recovery Vehicle.
“We intend to lead the modernization of American armored vehicle mobility systems with the efficiencies and opportunities created by this merger of industry leaders,” RENK Group CEO Susanne Wiegand said. “RENK America will advance our ability to empower our forces by offering reliable and safe combat mobility innovations.”
RENK America expects to retain L3Harris’ nearly 400 employees, many of whom are military veterans who have used the products they now build.
As part of the transaction, RENK Group also acquired L3Magnet-Motor GmbH in Starnberg, Germany, a global maker of hybrid drive solutions for protected vehicles and Navy vessels.
Founded in 1873, RENK Group is a global manufacturer of gear units, automatic transmissions, slide bearings, suspension systems, couplings and test systems. It serves a diverse range of end markets with a particular focus on armored vehicles, defense and civil marine, energy production, plastics, oil and gas, and others. With more than 2,600 employees, RENK generated sales of over $660 million in 2020.
With roots dating to 1895, L3Harris Technologies is a global aerospace and defense technology company, delivering end-to-end solutions for customers’ mission-critical needs. The company provides advanced defense and commercial technologies across air, land, sea, space and cyber domains. L3Harris has about $18 billion in annual revenue and 48,000 employees with customers in more than 100 countries.