KONGSBERG buys 49.9 % of Patria creating a leading Nordic defence partnership
Today, KONGSBERG has entered into an agreement with the Finnish state for the purchase of 49.9 % of the shares in Patria for EUR 272 million. Patria is Finland’s leading defence supplier and owns 50 % of the shares in the Norwegian company Nammo. The partnership will be a leading defence supplier in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of NOK 13.4 billion in 2015.
- 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. 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, CEO of KONGSBERG.
Patria has approximately 2,800 employees and had revenues of EUR 428 million (NOK 3.8 billion) in 2015. The company is Finland’s leading defence supplier, and has a broad and modern product portfolio.
The Norwegian state and Patria each holds a 50 % share in Nammo. Nammo has approximately 2,200 employees and had revenues of NOK 3.8 billion in 2015. The company develops and produces high technology products within ammunition and rocket engines for defence and civilian applications.
- As a partnership, KONGSBERG, Patria and Nammo hold both complementary and world leading products as well as key geographic areas that strengthen each other. 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, says Qvam.
- This partnership will be a larger and stronger supplier to the Norwegian and Finnish armed forces with more than 7,000 employees and total gross revenues of 13.4 billion Norwegian kroner. We have a close cooperation today, including on air defence and missiles, and this cooperation will be strengthened further. Significant opportunities within other areas, such as maintenance and aviation, will also emerge, says Qvam.
The completion of the transaction is expected in the second quarter of 2016, and is subject to normal closing conditions e.g. approval from relevant authorities. The purchase price plus settlement of interest and taxes at closing will be settled in cash, and financed by a bridge facility in DNB.
Read more in presentation
At the time of the transaction Patria’s board consists of:
Christer Granskog, Chairman
Kirsi Komi, Deputy Chairman
Kari Rimpi, Board member
Sari Helander, Board member
Marko Hyvärinen, Board member
At the time of the transaction Patria’s top level management consists of:
Heikki Allonen, President, Chief Executive Officer
Jukka Holkeri, Chief Strategy Officer
Ville Jaakonsalo, Chief Administration Officer
Hanna Kyrki, General Counsel, Chief Compliance Officer
Mika Kari, President Land
Lassi Matikainen, President Aviation
Pasi Niinikoski, President Systems
Financial key figures Patria (MEUR, 100 %):
| Profit for the year
| Total Assets
| Total liabilities
| Total equitiy
Patria will be recognized in KONGSBERG’s consolidated accounts using the equity method according to IFRS 11 “Joint Arrangements”.
For further information, please contact: Ronny Lie, Chief Communication Officer, KONGSBERG, Tel: (+47) 916 10 798
CEO Walter Qvam will hold a press conference/investor presentation via video from Helsinki today at 3.30pm in KONGSBERG’s offices in Vika Atrium, Oslo.
Note to media:
CEO Walter Qvam is in Helsinki, Finland for the signing, and is available for interviews in Helsinki or by phone. Please contact Corporate Communications Manager Johannes Dobson for interviews on tel: (+47) 906 77 262.