Leonardo Sells Underwater Business to Fincantieri: Rome, January 14, 2025 – Leonardo announced today the successful completion of the sale of its Underwater Armaments & Systems (UAS) business line to Fincantieri. This follows the binding agreement signed on May 9, 2024.
Under the terms of the agreement, Leonardo received an initial payment of €287 million at closing, based on a fixed Enterprise Value of €300 million. A variable component, with a maximum value of €115 million, will be determined after the finalization and approval of UAS’s 2024 financial results. This brings the total maximum Enterprise Value to €415 million.
UAS, formerly Whitehead Alenia Sistemi Subacquei S.p.A., is a renowned Italian company specializing in the development and production of submarine defense systems, including torpedoes, countermeasures, and sonars. Established as an independent entity, it was later integrated into Leonardo in 2016.
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The business line also encompasses a 50% stake in GEIE EuroTorp, a joint venture with Naval Group and Thales, focused on the design and production of the MU90 light torpedo. UAS operates from two primary locations: Livorno and Pozzuoli. In 2023, the business line generated revenues of approximately €160 million and an EBITDA of €34 million.
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Leonardo completes sale of underwater business to Fincantieri.
Financial and Legal Advisors
Leonardo received financial advisory support from Rothschild & Co, legal counsel from Studio Cappelli RCCD, and financial documentation assistance from PwC throughout the transaction.
Furthermore, UBS provided a fairness opinion on the economic terms of the transaction, assisting Leonardo’s Control and Risks Committee in its evaluation.
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Related Party Transaction
Given the shared control by the Ministry of Economy and Finance, the transaction between Leonardo and Fincantieri falls under the category of a Related Party Transaction. However, it is considered a “lesser importance” transaction according to current regulations and Leonardo’s internal procedures.
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Board Approval
The Leonardo Board of Directors approved the transaction following a thorough review and a unanimous, non-binding favorable opinion from the Control and Risks Committee, acting in its capacity as the Committee for Related Parties Transactions. This approval confirmed the Board’s assessment of the transaction’s benefits to the company and the fairness of its terms.
This news story provides a more detailed and informative account of the press release, offering a comprehensive overview of the transaction, its key aspects, and the involvement of various parties.
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