© konsberg Electronics Production | March 18, 2016

Kongsberg buys 49.9 % of Patria

Kongsberg has entered into an agreement with the Finnish state for the purchase of 49.9 % of the shares in Patria for EUR 272 million.
Patria is a Finish defence supplier and owns 50 % of the shares in the Norwegian company Nammo. The partnership will create a new defence-giant in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of NOK 13.4 billion (EUR 1.42 billion) in 2015.

“By forming this industry partnership consisting of Kongsberg, Patria and Nammo, we’re taking a proactive step to meet the ongoing consolidation in the defence industry. This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses,” says Walter Qvam, CEO of Kongsberg.

Patria has approximately 2'800 employees and had revenues of EUR 428 million (NOK 3.8 billion) in 2015. The Norwegian state and Patria each holds a 50 % share in Nammo. Nammo has approximately 2'200 employees and had revenues of NOK 3.8 billion in 2015. The company develops and produces high technology products within ammunition and rocket engines for defence and civilian applications.

“As a partnership, Kongsberg, Patria and Nammo hold both complementary and world leading products as well as key geographic areas that strengthen each other. This, combined with Patria’s strong position in Finland and Kongsberg’s strong global alliances and position in Norway, makes us significantly stronger together in a growing global defence market,” says Qvam.

The completion of the transaction is expected in the second quarter of 2016.


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