Fincantieri Completes Acquisition of Leonardo’s ‘Underwater Armaments Systems’ Division

Italian shipbuilder Fincantieri has announced its agreement to acquire Leonardo S.p.A’s “Underwater Armaments Systems” business, as of May 9, 2024. This acquisition is seen as a strategic move to strengthen Fincantieri’s position as a leader in the underwater and naval defense sector.

The acquisition will provide Fincantieri with control over Italy’s underwater acoustic technologies, which will play a crucial role in the company’s growth strategy for the underwater sector. This strategy will focus on new military applications, innovative security solutions for critical infrastructure, and new products in the civilian sector.

The total value of the acquisition amounts to €300 million as a fixed Enterprise Value, with the potential for an additional €115 million based on certain growth assumptions for the UAS business line in 2024, making the maximum Enterprise Value reach €415 million.

The “Underwater Armaments Systems” business line, originally established as Whitehead Alenia Sistemi Subacquei S.p.A., was a subsidiary of Leonardo specializing in submarine defense systems, torpedoes, countermeasures, and sonars. After merging into Leonardo S.p.A. in early 2016, it was renamed “Underwater Armaments & Systems” (“UAS”). The business also includes a 50% stake in GEIE EuroTorp, established with Naval Group and Thales, focused on the design and construction of the MU90 light torpedo, with locations in Livorno and Pozzuoli. In 2023, the UAS business generated approximately €160 million in revenues.

The acquisition is expected to be completed in early 2025.