Creating a Leading Nordic Defence Partnership

Kongsberg has recently entered into an agreement with the Finnish state for the purchase of 49.9% of Patria shares for €272 million. Patria owns 50% of Nammo shares (the other 50% are owned by the Norwegian state). The partnership will become a leading defence supplier in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of NOK13.4 billion in 2015. The completion of the transaction is expected in the second quarter of 2016, and is subject to normal closing conditions.

Eero Heliövaara, Director General, Ownership Steering Dept. Finland (left), and Walter Qvam, President and CEO of Kongsberg, during the signing ceremony. (Picture: Kongsberg)

“By forming this industry partnership consisting of Kongsberg, Patria and Nammo, we are taking a proactive step to meet the ongoing consolidation in the defence industry,” Walter Qvam, CEO of Kongsberg, said. “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. This partnership will be a larger and stronger supplier to the Norwegian and Finnish armed forces with more than 7,000 employees and total gross revenues of 13.4 billion Norwegian kroner. We have a close cooperation today, including on air defence and missiles, and this cooperation will be strengthened further.”