Italian shipbuilding firm Fincantieri has announced its acquisition of Leonardo’s underwater armament systems unit for 415 million euros ($447 million).
The move will boost Fincantieri’s military torpedo production, further expanding its undersea weapons portfolio.
It will reportedly allow the Trieste-based company to take full control of the country’s underwater acoustic technologies.
According to Fincantieri chief executive Pierroberto Folgiero, the acquisition represents a milestone for the company as it prepares its underwater strategy moving forward.
“Underwater technological autonomy and global executive capabilities, in this new geopolitical and industrial scenario, will be the distinctive factors that will allow Fincantieri’s potential to be fully exploited,” he said.
The acquisition is set to be finalized by year’s end.
Specializing in Submarine Defense Systems
Leonardo’s underwater armament systems business began as a separate company, Whitehead Alenia Sistemi Subacquei SpA.
It specialized in designing and developing submarine defense systems, including torpedoes, sonars, and anti-submarine countermeasures.
One of its prominent products is the MU90 lightweight torpedo for countering threats from modern submarines.
The firm merged with Leonardo in 2016, making it a business unit. The division recorded 160 million euros ($172 million) in revenues last year.
“The disposal of the underwater armaments systems is part of the plan of rationalizing Leonardo’s business portfolio,” Leonardo chief executive Roberto Cingolani explained.
“The initiative gives further emphasis to the cooperation between Leonardo and Fincantieri, within the framework aimed at achieving more effective defense and global competitiveness.”
