Fincantieri has completed the acquisition process of the Underwater Armaments & Systems (UAS) business line from Leonardo for a total maximum enterprise value of €415m ($426.15m).
This was achieved by purchasing all shares of WASS Submarine Systems, a company specifically established for this transaction.
This move aligns with Fincantieri's focus on expanding its naval defence segment and advancing its proficiency in underwater operations, consolidating its role as a prominent integrator of technology in dual-use sectors.
The acquisition, initially agreed upon on 9 May 2024, involved a payment of €287m ($295.94m) as the fixed component of the purchase price.
The variable part, contingent on the UAS business line's performance in 2024, will be determined after the validation of UAS's financial outcomes for the fiscal year 2024.
The total enterprise value of UAS, including the recent payment, is subject to customary price adjustments.
Fincantieri CEO and managing director Pierroberto Folgiero said: “The acquisition of WASS Submarine Systems represents a decisive step for Fincantieri in strengthening its technological leadership in the underwater domain, a crucial sector for the future of maritime security and technology.
“By integrating advanced expertise in acoustic and underwater weaponry systems, we have expanded our ability to develop innovative solutions for naval defence while ensuring the protection of critical underwater infrastructure, such as submarine cables and offshore energy facilities. This confirms our goal to lead the evolution of advanced ship technologies, responding to global challenges with entrepreneurship and strategic vision.”
Whitehead Alenia Sistemi Subacquei (WASS), previously a 100% subsidiary of Leonardo specialising in submarine defence systems such as torpedoes, countermeasures, and sonars, was integrated into Leonardo in early 2016 and rebranded as the UAS business line.
It also holds a 50% stake in GEIE EuroTorp, a joint venture with Naval Group and Thales, focused on the MU90 light torpedo's design and production.
The UAS business operates out of two facilities in Livorno and Pozzuoli.
Fincantieri's acquisition brings in-house expertise in underwater acoustic technologies and weapon systems, paving the way for growth opportunities in both military and civilian markets.
Leonardo received advisory support from Rothschild & Co for financial aspects, Studio Cappelli RCCD for legal matters, and PwC for preparing the financial documentation of the business unit.
Additionally, UBS provided a fairness opinion on the transaction's financial terms to Leonardo's Control and Risks Committee.
