Norway's Kongsberg has purchased a 49.9% stake in Finnish company Patria for €272 million ($307 million), providing a “significant strengthening” of its position in the Nordic defence industry.
Kongsberg will benefit from Patria’s 50% share of Norwegian ammunition manufacturer Nammo, and combined revenues from the new partnership will amount to NKr13.4 billion ($1.6 billion), Kongsberg says.
“By forming this industry partnership – consisting of Kongsberg, Patria and Nammo – we’re taking a proactive step to meet the ongoing consolidation in the defence industry,” Kongsberg says.
“This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses,” says Walter Qvam, Kongsberg chief executive.
Completion of the acquisition is expected in the second quarter of 2016, “subject to normal closing conditions”.
Kongsberg will benefit from Patria’s aircraft composite experience, namely on the Airbus Defence & Space A400M transport and NH Industries NH90 helicopter – on which Kongsberg also has a presence – as well as aircraft life-cycle support. Patria is also a first tier supplier for the composite wing spoilers on the Airbus A380.
“As a partnership, Kongsberg, Patria and Nammo hold both complementary and world leading products as well as key geographic areas that strengthen each other,” says Qvam. “This, combined with Patria’s strong position in Finland and Kongsberg’s strong global alliances and position in Norway, makes us significantly stronger together in a growing global defence market.”