The completion of the transaction, taking into account the signed commercial collaboration agreements and the recent acquisition of Remazel, accelerates and consolidates Fincantieri group’s leadership as a technological integrator in the underwater and naval defense sector, in line with the announced strategy and following a series of already established industrial agreements.
As a result of the transaction, Fincantieri will acquire not only the technologies related to torpedo’s production but also the control of the country’s underwater acoustic technologies, which will be a fundamental element in the group’s growth strategy in the underwater sector, focusing on new applications in the military field, innovative solutions for the security of civilian underwater infrastructure, as well as new products in the civilian sector.
The acquisition, expected to be finalized at the beginning of 2025, will include, in addition to the fulfillment of usual suspensive conditions for this type of transaction, the transfer of the aforementioned business unit to a new company (NewCo).
The value of the acquisition is equal to €300 million as fixed Enterprise Value, subject to usual price adjustment mechanisms, in addition to a maximum of €115 million as a variable component based on certain growth assumptions linked to the performance of the UAS business line in 2024, for a total maximum Enterprise Value of €415 million.
Pierroberto Folgiero, CEO of Fincantieri, commented: “We are extremely proud of this transaction, which represents a crucial milestone in our equity story and in the implementation of Fincantieri’s underwater strategy for the next industrial cycle. Underwater technological independence and our global operational capabilities, in this new geopolitical and industrial scenario, will be key features which will allow us to fully exploit the potential of Fincantieri in the interest of our Group’s industrial and financial stakeholders.”
The Underwater Domain
The underwater domain is becoming increasingly relevant for military and security issues concerning critical subsea infrastructures such as gas pipelines, cables for telecommunications and electrical transmissions, as well as for the surveillance of marine mineral deposits.
The underwater domain holds significant strategic importance in the Mediterranean Sea, a crossroads between three continents and densely populated with critical infrastructure. Activities such as intelligence, surveillance, defense, and deterrence are experiencing strong growth, necessitating a dedicated industrial focus.
Fincantieri’s leadership in Italian underwater operations dates back to the early 1900s with the construction of the first Italian submarine, the Delfino. Production and development were halted from 1945 to 1968 due to post-war constraints. Production resumed in 1968 with the manufacturing of small to medium submarines (Toti class and Sauro class). From 1996 to 2019, Fincantieri, in collaboration with ThyssenKrupp MS, strengthened its capabilities to develop large submarines for the domestic market, including exploring hydrogen fuel cell propulsion as an alternative to nuclear propulsion. Since 2019, Fincantieri has developed its first fully in-house submarine, designed new submarines for the Italian Navy, and built mini-submarines and midgets, thereby expanding its export share to markets such as the Middle East, the Black Sea and Southeast Asia, not yet served by existing industrial offerings.
During 2023, Fincantieri also collaborated with the Italian Navy and specialized companies in the sector to develop a proprietary solution for an underwater propulsion system utilizing lithium battery.
Additionally, in 2023, the Group entered into agreements with several entities: with Leonardo for initiatives related to sensors and electronic systems; with C.A.B.I. Cattaneo S.p.A., a leading company in designing, developing, and supplying underwater vehicles for the Special Forces of the Italian Navy; with Sonsub, Saipem S.p.A.’s center of excellence specializing in underwater technologies and solutions. In the civilian sector, the Group signed an agreement with WSense, a deep tech company concentrating on underwater monitoring and communication systems. On February 15, 2024, the Group completed the acquisition of Remazel, a global leader in designing and supplying high-complexity top-side equipment, including launch and recovery systems for underwater vehicles.
