Fincantieri Buys Leonardo's Submarine Business for €415M

The acquisition aligns with Fincantieri's strategy to bolster its defense sector, which now represents 25% of its revenues
  • Defensemirror.com bureau
  • 07:59 AM, May 11, 2024
  • 952
Fincantieri Buys Leonardo's Submarine Business for €415M

Italian shipbuilder Fincantieri announced on Thursday the acquisition of Leonardo's Underwater Armament Systems (UAS) for an enterprise value of €415 million.

The deal includes a fixed payment of €300 million, with an additional €115 million contingent on UAS's 2024 performance. Formerly known as Whitehead Alenia Sistemi Subacquei (WASS), UAS will be integrated into Fincantieri's submarine business.

Fincantieri will finance the acquisition through a capital increase of up to €500 million, split into two parts. Initially, subscribers to a €400 million capital increase will receive warrants for an additional €100 million tranche. Fincantieri's shares, valued at €1.15 billion, fell by 7.5% amid concerns over the size of the recapitalization required for the deal.

The excess capital raised could be used to expand Fincantieri's defense business. State lender Cassa Depositi e Prestiti (CDP) has committed to participating in the capital increase, although details were not disclosed.

The acquisition aligns with Fincantieri's strategy to bolster its defense sector, which now represents 25% of its revenues, and reinforces its presence in the subsea industry.

Leonardo's CEO Roberto Cingolani described the transaction as part of a broader effort to streamline the defense company's business portfolio.

Also Read

Indonesia Signs Contract for Two FREMM Frigates with Fincantieri

April 17, 2024 @ 06:24 AM

Indonesia Orders Fincantieri PPA Multipurpose Offshore Patrol Ships worth €1.2B

March 28, 2024 @ 08:58 AM

Fincantieri-Alexandria Shipyard MoU to Focus on Exploring New Vessel Opportunities for Egyptian...

March 7, 2024 @ 03:46 AM

U.A.E.’s EDGE Group, Italy’s Fincantieri Announce €30B Joint Venture for Naval Manufacturing...

February 22, 2024 @ 05:35 AM
FEATURES/INTERVIEWS