Leonardo sells its Underwater Armaments Systems division to Fincantieri

According to a PR published by Leonardo on May 9, 2024, the Italian firm has announced the sale of its Underwater Armaments Systems (UAS) business line to Fincantieri.

Leonardo announced the signing of a definitive agreement to sell its Underwater Armaments Systems (UAS) business line to Fincantieri for an Enterprise Value consideration comprising a fixed component amounting to € 300 million, subject to the usual price adjustment mechanisms, plus a variable component of up to € 115 million subject to the achievement of certain 2024 performance targets, making for a total Enterprise Value up to €415 million. Closing of the transaction is expected at the beginning of 2025 and is subject to the usual customary regulatory approval.

Roberto Cingolani, Leonardo’s CEO and MG, explained that this sale is part of Leonardo’s portfolio rationalization strategy. He emphasized that the transaction underscores the collaboration between Leonardo and Fincantieri in pursuit of enhanced defense capabilities and global competitiveness.

The UAS business line originated from Whitehead Alenia Sistemi Subacquei S.p.A., a Leonardo subsidiary specializing in submarine defense systems like torpedoes, countermeasures, and sonars. In 2016, it was integrated into Leonardo and renamed Underwater Armaments & Systems.

It includes a 50% share in GEIE EuroTorp, a joint venture with Naval Group and Thales for MU90 light torpedo development. UAS operates from Livorno and Pozzuoli and generated revenues of approximately €160 million and an EBITDA of €34 million in 2023.