KONGSBERG acquires Aerospace Industrial Maintenance Norway AS
Kongsberg Defence & Aerospace (KONGSBERG), a subsidiary of Kongsberg Gruppen, has entered into agreement with the Norwegian Ministry of Defence for the acquisition of Aerospace Industrial Maintenance Norway AS (AIM).
AIM is the Norwegian armed force’s business for maintenance, overhaul
and upgrade of the Air Force’s aircraft and helicopters. In order to further
strengthen deliveries, capability and competence KONGSBERG has entered into
agreement with Patria for a shared ownership where KONGSBERG is the majority
shareholder with 50.1% ownership and Patria with 49.9%.
contribute with important experience and competence within maintenance, and the
two companies will combined ensure a solid foundation for further development. The
acquisition is a major step in consolidating the Norwegian industry’s
competence and capability for military aircraft and helicopter maintenance.
- The acquisition
of AIM is a significant milestone to strengthen KONGSBERGs role as a strategic
partner for the Norwegian armed force’s operative requirements, both as a
supplier of equipment and for maintenance. With this acquisition our ownership
in the Nordic defence industry is further strengthened and we are taking new,
important steps in the Nordic and international defence market, says CEO of Kongsberg
Gruppen, Geir Håøy.
AIM has played a
major role in Norwegian aviation industry since 1916 and has 440 employees. The
company has its main operating base at Kjeller and an operative unit at Rygge
air station. AIM has 100% ownership in the Belgium Engine Center SPRL(BEC) in
Herstal outside of Liege in Belgium. The AIM Group conducts advanced and heavy
maintenance, overhaul and upgrade primarily within air military operations.
Important priorities are engine maintenance for the new F-35 aircraft and for Norway’s
new search and rescue helicopters.
- For the last
30 years KONGSBERG has conducted maintenance and repairs of gearboxes and rotor
heads for Sea King helicopters. In 2018 this was expanded with a gear box and
test facility for maintenance of more than a hundred military helicopters in
the Nordics and other nations. In conjunction with the extensive operations we
have for air defence systems, aircraft parts and missiles for the F-35, this
acquisition makes us a more complete supplier with increased strategic
importance to the Norwegian Air Force, says Eirik Lie, President of Kongsberg
Defence & Aerospace.
factor during the acquisition process has been to facilitate the development of
AIM to become a main provider of maintenance of the Norwegian Defense force’s
airforce systems, so that AIM can contribute to safeguard national readiness on
such maintenance. This co-operation will strengthen national ability to sustain
a qualified readiness for such competence in Norway.
- KONGSBERG and
the Norwegian armed forces have entered into a strategic agreement which will
provide basis for future maintenance work through AIM. We see considerable
opportunities within advanced maintenance, and the acquisition will secure
national readiness and entail more cost efficient maintenance of the armed
force’s aircraft and helicopters. The acquisition strengthens our position in
the Nordic maintenance market, where we are now taking a next step in the
Nordic defence industry alliance we established with the purchase of 49.9 per
cent of Patria in 2016. Our joint team is looking forward to welcome highly
skilled AIM employees, and we are looking forward to our combined future
performance, Lie continues.
AIM Group is expected
to have a revenue of around NOK 1 billion and an EBITDA margin of 8-9% for
2018. The parties have agreed an enterprise value of NOK 151 million, on a cash
and debt free basis, and with normalized working capital. This value reflects
i.a. a commitment for AIM to invest around NOK 540 million in the
new F-35 national facility at Rygge over the next 2-3 years.
The acquisition is subject to among others, approval by relevant
authorities, and is expected to be finalized during H1 2019. The purchase price
will be financed by available cash and finally settled in 2023. The purchase
price will be subject to certain post-closing adjustments.
For further information, please contact:
Ronny Lie, VP Communications, Kongsberg Gruppen ASA, Tel.: (+47) 916 10 798.
Jan Erik Hoff, VP Investor Relations, Kongsberg Gruppen ASA, Tel.: (+47) 991 11 916.
KONGSBERG (OSE-ticker: KOG) is an international, knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace. KONGSBERG has 7 000 employees located in more than 25 countries and total revenues of NOK 14.5 billion in 2017. Follow us on Twitter: @kongsbergasa.
This information is subject to disclosure requirements pursuant to §5-12 of the Norwegian Securities Trading Act.