Italian defence and aerospace company Leonardo has agreed to acquire a 25.1% stake in German defence sensor manufacturer Hensoldt, saying the transaction will enhance co-operation between the two companies.
Hensoldt is based in Taufkirchen near Munich. (Hensoldt)
Leonardo will pay EUR606 million (USD732 million) in cash to become Hensoldt’s largest shareholder alongside German state-owned development bank Kreditanstalt für Wiederaufbau (KfW), which agreed in March to buy a 25.1% stake for EUR450 million. KfW and Leonardo will each get to propose two candidates to Hensoldt’s supervisory board.
US private equity firm KKR, Hensoldt’s majority shareholder since 2017, will retain an 18% stake after the KfW and Leonardo transactions close in the first and second halves of 2021, respectively.
The Leonardo-Hensoldt deal will allow the two companies, which collaborate on the Eurofighter Typhoon programme, “to deepen access to their respective markets, offer complete solutions to their customers, and share best practices for the development of future technologies”, Leonardo said on 24 April.
“We see multiple opportunities of working together with Leonardo to further support our successful strategy and to be able to strengthen Hensoldt’s long-term growth,” Hensoldt CEO Thomas Müller said.
The Leonardo announcement follows the initial public offering (IPO) that Hensoldt conducted in September to support its investment strategy and strengthen its balance sheet. Flush with IPO cash, Hensoldt acquired Austrian data analytics provider SAIL LABS in January and agreed in March to buy France-based Mahytec, which manufactures hydrogen fuel storage systems.
Hensoldt generated revenue of EUR1.2 billion in 2020 and is scheduled to release its first-quarter 2021 results on 7 May.
Looking to read the full article?
Gain unlimited access to Janes news and more...
