AGI – Leonardo has entered into an agreement with Square Lux Holding II, a company controlled by funds assisted by Kohlberg Kravis & Roberts & Co., for the acquisition of a 25.1% stake in Hensoldt at a price of approximately 606 million euros, equal to 23 euros per share. Hensoldt is the leading German company in the field of sensors for defense and security applications, with an ever-expanding portfolio in cyber security, data management and robotics. Following the finalization of the transaction, Leonardo will become the major shareholder of Hensoldt together with Kreditanstalt fur Wiederaufbau (Kfw), 80% owned by the Federal Republic of Germany. Kfw agreed to acquire a 25.1% stake in HensoldT in March 2021.
Perfume: enthusiastic about the investment in Hensoldt
“We are excited about the investment in Hensoldt as a catalyst for creating a closer partnership that will further strengthen their respective positions in the electronics market. for defense expected to grow. We believe this step will create value for our shareholders by bringing together complementary strengths to serve more customers and partners with the solutions they need, while preserving national technologies and capabilities. This investment also reflects the long-term vision regarding the importance of building cooperation in the European aerospace and defense industry and Leonardo’s determination to have an active role in its development “, commented Alessandro Profumo, CEO of Leonardo.
Thomas Muller, managing director of Hensoldt, said: “We welcome Leonardo’s investment in Hensoldt. Through this transaction we will be able to count on a second long-term reference shareholder in our company and a potential important strategic partner with whom we already successfully collaborate on a number of programs. As a leader in the supply of sensors for defense and security applications, we see multiple opportunities for collaboration with Leonardo to further support our successful strategy and strengthen Hensoldt’s long-term growth. “
Through the investment in Hensoldt, Leonardo will establish a long-term strategic presence in the rapidly growing German defense market. Already today, Leonardo and Hensoldt have an established partnership that includes collaboration on the Eurofighter Typhoon program as independent operators within the consortium. The closer cooperation will be based on a strong complementarity of the two companies in terms of geography, product portfolio, markets, customers and suppliers in the Air, Terrestrial and Naval domains and will allow to strengthen access to their respective markets, offer complete solutions to its customers. and share best practices for developing future technologies.
Upon completion of the transaction, Leonardo will propose two candidates to be appointed as members of the Hensoldt Supervisory Body. Leonardo will maintain a solid financial structure also through sales and the listing of Leonardo Drs. Finalization of the transaction, expected in the second half of 2021, is subject to customary conditions, including regulatory clearances in Germany and a select number of countries. Ubs and Db acted respectively as lead financial advisor and financial advisor to Leonardo. Clifford Chance acted as Leonardo’s legal advisor.
The government also appreciated the operation. The Minister of Economic Development, Giancarlo Giorgetti, expressed “satisfaction” for Leonardo’s acquisition of 25.1% of the company for which he had personally intervened with the German Minister of Economy Altmaier. The agreement will allow the birth of a European leader in the field of sensors for defense and security applications, in cyber security, data management and robotics. “Our country – says Giorgetti – thus becomes the leader in a strategic sector of European cooperation in the defense industry”.
Satisfaction also on the part of the Minister of Defense, Lorenzo Guerini. “Leonardo’s acquisition of 25.1% of Hensoldt, a leading company in Germany in the field of cybersecurity and data management, is very positive. Excellent operation conducted by the Italian company that goes in the direction of the European cooperation that we support in the defense sector”, he wrote on Twitter.
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