Krauss-Maffei Wegman (KMW) on Thursday said it has agreed to acquire the land systems business of Diehl Defence, helping KMW consolidate the German land systems industry and expanding its portfolio of products and services.

Terms of the deal, which is subject to approval by regulators, were not disclosed. Both companies are based in Germany.

Leopard 2 Main Battle Tank. Photo: Krauss-Maffei Wegman
Leopard 2 Main Battle Tank. Photo: Krauss-Maffei Wegman

KMW said that Diehl Defence Land Systems has $68.8 million in annual sales and has 370 employees.

Diehl Defence makes guided missiles, air defense systems, ammunition, and sensor and security systems. The company’s land systems subsidiary makes tank tracks and suspensions and equips all the German army’s tracked vehicles.

With the sale, Diehl Defence will focus on its core business of guided weapons, intelligent ammunition and impact and protection. Diehl Defence is part of the German multi-industrial 

Diehl Group.

KMW makes main battle tanks, infantry fighting vehicles, a range of wheeled vehicles, artillery and armament systems, and other military related products and services.