Italian shipbuilder Fincantieri announced on Thursday that it has acquired Leonardo’s Underwater Armament Systems (UAS) business in a deal valued at 415 million euros.
Formerly known as Whitehead Alenia Sistemi Subacquei (WASS), the submarine business line has an enterprise value of 415 million euros. The acquisition consists of a fixed payment of 300 million euros, with an additional maximum of 115 million euros tied to the 2024 performance of the UAS business.
Fincantieri confirmed the acquisition, as reported earlier by Reuters, and stated that the purchase will be financed through a capital hike of up to 500 million euros, divided into two parts.
An initial capital increase of up to 400 million euros will grant subscribers warrants to exercise in a second tranche of up to 100 million euros. However, shares in Fincantieri, with a market capitalisation of 1.15 billion euros, closed down 7.5% following the announcement, falling more than 9%. Analysts expressed concern about the size of the proposed recapitalisation to fund the deal.
The additional funds raised beyond the deal’s value will be utilized by Fincantieri to further develop its defense business, according to a source close to the matter.
State lender Cassa Depositi e Prestiti (CDP) has committed to subscribing to a portion of the capital hike, Fincantieri stated, without providing further details.
“This acquisition aligns with our broader strategy to grow through acquisitions, with an increasing focus on defense, which now accounts for approximately 25% of our revenues, while also strengthening our position in the subsea business,” said Fincantieri’s Chief Executive Pierroberto Folgiero, who described the deal as “a crucial milestone” for the group.
In a separate statement, Leonardo Chief Executive Roberto Cingolani described the deal as part of a plan to streamline the defense company’s business portfolio.