Fincantieri Acquires Leonardo’s ‘Underwater Armaments Systems’ Business

Italian shipbuilder Fincantieri announced yesterday (May 9, 2024) that it has signed an agreement for the acquisition of Leonardo S.p.A’s “Underwater Armaments Systems” business.

In a press release, the Italian shipbuilder explained that the acquisition accelerates and consolidates the group’s positioning as a leader in the underwater and naval defence sector, in line with its strategy.

As a result of the acquisition, Fincantieri will also gain control of Italy’s underwater acoustic technologies, which will be a fundamental element in the growth strategy in the underwater sector, focusing on new applications in the military field, innovative solutions for the security of critical infrastructure, and new products in the civilian sector.

The value of the acquisition is equal to €300 million as fixed Enterprise Value, subject to usual price adjustement mechanisms, in addition to a maximum of €115 million as a variable component based on certain growth assumptions linked to the performance of the UAS business line in 2024, for a total maximum Enterprise Value of €415 million.

The “Underwater Armaments Systems” business line was originally established as Whitehead Alenia Sistemi Subacquei S.p.A., a historic 100% subsidiary of Leonardo. It was founded as
a company specialising in the construction of submarine defense systems and in particular torpedoes, countermeasures and sonars. In early 2016, the company merged into Leonardo S.p.A., becoming a business line, and was renamed “Underwater Armaments & Systems” (“UAS”). The business line also includes a 50% participation in GEIE EuroTorp (established with Naval Group and Thales), dedicated to the design and construction of the MU90 light torpedo, and is located in two locations, Livorno and Pozzuoli. In 2023, the UAS line of business generated revenues of approximately €160 million.

The acquisition is expected to be finalized at the beginning of 2025.

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