Saab Sells Nammo Ammo Share, Finland’s Patria Oyj Buys
DID has covered the Finnish defense firm Patria Oyj, most recently in the context of the Czech government’s $1 billion wheeled APC acquisition. They’re an innovative firm to watch in the European market. We’ve also covered a Nordic Ammunition Co. (“Nammo”) subsidiary who sells specialized small caliber ammunition to US forces. Now Patria has signed a Letter of Intent with Swedish firm SAAB AB to acquire their 27.5% of shares in Nammo AS. The purchase sum is SEK 400 million (about USD $49.5 million)
Nammo’s Shareholders’ Agreement now gives the Government of Norway until December 18, 2005 to exercise its right to acquire an additional 5% of Nammo’s shares, which would lead to a 50/50 ownership split with Patria. The acquisition of the shares is subject to necessary regulatory approvals and customary approvals of the parties, and Patria expects to finalize its transaction before the end of 2005.
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Patria’s President and CEO Jorma Wiitakorpi said:
“Increased ownership in Nammo supports both Patria’s internationalisation and the security of supply in Finland. We are also interested in expanding our operations in the Nordic countries. As an ammunition manufacturer Nammo has a definite linkage with certain Patria’s businesses in which we want to focus on our core competencies and seek reliable partners’ competitive solutions to support our own manufacturing.”
Patria Group’s key business areas are armored wheeled vehicles, mortar systems (vid AMOS) and artillery, helicopters and aircraft, and life cycle support of these products. Patria’s owners are the Finnish State (73.2%), and European Aeronautic Defence and Space Company EADS N.V. (26.8%).
Nammo AS is a leading developer and manufacturer of ammunition systems and missile & space products, as well as a world leader within demilitarisation technology. Nammo is a group with subsidiaries in Finland, Germany, Norway, Sweden and US, and its operational structure is divided into five business areas: Small Calibre Division, Medium Calibre Division, Large Calibre Division, Missile Products Division and Demil Division.
