Leonardo will buy a 25.1% stake in Hensoldt from a KKR-controlled investment vehicle for 606 million euros (US$733 million), the company announced on Saturday.
The decision is expected to beef up the Italian aerospace company’s defense electronics business and help it have a broader role in the European defense industry.
Leonardo is buying the stake from Square Lux Holding II, the KKR-controlled entity, for about 23 euros a share, the company said in a statement. The deal makes state-backed Leonardo the largest shareholder of the German defense company along with government-backed Kreditanstalt Fuer Wiederaufbau, which agreed in March to acquire a 25.1% stake. Square Lux will still hold 18% after the sale.
Hensoldt is a leading European player in the field of sensor solutions for defence and security applications, with an expanding portfolio in cyber security, data management and robotics. As a result of the stake purchase, Leonardo will become the largest shareholder of Hensoldt alongside Kreditanstalt für Wiederaufbau (KfW) which is 80% owned by the Federal Republic of Germany. KfW agreed to acquire a 25.1% stake in the company in March this year.
“We are excited about the investment in Hensoldt as the catalyst for the establishment of closer cooperation that will further enhance our respective positions in the growing defence electronics market,” said Alessandro Profumo, Leonardo CEO. “We believe that this step will create value for all our shareholders as it will bring together complementary strengths to serve more customers and partners with the solutions they need, whilst preserving national technologies and capabilities.”
“With this transaction, we will have a second long-term anchor shareholder in our company and a strong potential strategic partner with whom we are already successfully working together on a number of programs,” said Thomas Müller, Hensoldt CEO. “As a leading provider of sensor solutions for defence and security applications, 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.”
The two companies are already collaborating on the Eurofighter Typhoon program as independent operators within the consortium model. The deal is expected to strengthen Italian and German defense ties and allow Leonardo to play a more active role in European defense cooperation.
Italian Defense Minister Lorenzo Guerini said in a tweet after announcement that the “excellent operation conducted by the Italian company moves in the direction of European cooperation” in the defense sector.
Hensoldt had, less than a week ago, said that KKR was soliciting bids for a 25.1% stake among major European defence contractors and that it was in advanced talks with companies including Leonardo, France’s Thales, Spain’s Indra and Sweden’s Saab.
MRO services provider AAR hosted an internship graduation ceremony on Aug. 8 for the 10 high school students who spent…
The Polish Government has finalised a Foreign Military Sales (FMS) Letter of Offer and Acceptance (LOA) to acquire 96 Boeing…
Korean Air and U.S. defence contractor L3Harris Technologies recently hosted an 'L3 Industry Day' at the Air Force Hotel in…
Worldwide Flight Services (WFS), part of the SATS Group, has secured a five-year licence to manage ramp handling operations at…
Elbe Flugzeugwerke GmbH (EFW), a joint venture between ST Engineering and Airbus, has been granted Continuing Airworthiness Management Organisation (CAMO)…
Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, has been honoured with the top management award by…
airBaltic has placed an order for an additional 10 Airbus A220-300 aircraft, bringing its total order to 90. This marks…
The Israel Ministry of Defense, in collaboration with the Tehkumah Authority, the IDF, and the Hof Ashkelon Regional Council, has…
Virgin Australia has finalised an agreement with Embraer for the purchase of eight E190-E2 small narrowbody aircraft, as part of…
The French Navy's CAMCOPTER S-100 Unmanned Air System (UAS) Squadron was deployed to ensure the security of the waters surrounding…
Air Transport Services Group (ATSG) subsidiary Cargo Aircraft Management (CAM) has leased a Boeing 767-300 converted freighter to New York-based…
Advanced air mobility (AAM) company Volocopter has conducted the world's first electric vertical take-off and landing (eVTOL) flight test within…
Lockheed Martin delivered the first of five C-130J Super Hercules tactical airlifters to the New Zealand Ministry of Defence and…
In June, U.S. Army Special Operations Aviation Command (USASOAC) awarded Boeing a $115 million contract to produce two more MH-47G…
Scoot, the low-cost subsidiary of Singapore Airlines (SIA),will receive its third and fourth Embraer E190-E2 aircraft in Singapore in September…
Ramiro Alfonsín will assume the role of Chief Commercial Officer, LATAM Airlines Group, from Nov. 7. He was earlier Vice…
U.S. and Netherlandshave formalized a Letter of Offer and Acceptance (LoA) agreement to purchase Lockheed Martin’s Joint Air-to-Surface Standoff Missile…
Air India Express has become the first Indian airline to launch a Virtual Interline platform, offering flyers a wider range…
Vard, Norwegian subsidiary of the Fincantieri Group and among the leading companies in the construction of specialized vessels, has signed…
Boeing has delivered the first MH-139A Grey Wolf production aircraft to the U.S. Air Force. The aircraft, part of a…
Embraer has signed an US$ 1 billion syndicated credit agreement for five years. The deal is an extension of a…
Hong Kong's Cathay Group has placed a firm order with Airbus for 30 A330-900 widebody aircraft. The newly-ordered aircraft will…
Türkiye's leading defence company Aselsan has made a significant leap in Defense News' annual “Top 100 Defence Companies List," climbing…
United Aircraft, Shenzhen-based manufacturer of uncrewed aircraft systems (UAS), is seeking international partners for its tilt-rotor UAV (R6000) that will…
Boeing has handed over the first MH-139A Grey Wolf production helicopter to the U.S. Air Force. This aircraft is part…
Airbus has been selected by the French Space Agency (CNES) to design and construct two next-generation microwave radiometers for the…
Liquidators for Air Vanuatu (Operations) Limited (In Liquidation) have announced that the airline will resume a reduced service via scheduled…
Saudia, the national carrier of the Kingdom of Saudi Arabia, has been recognised as the leading global airline for on-time…
Orizzonte Sistemi Navali (OSN), a joint venture between Fincantieri (51%) and Leonardo (49%), has received notification from the Italian Navy…
Israel Aerospace Industries (IAI) has secured a contract to supply airborne radios for the Israeli Defense Forces (IDF). These radios…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.