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January 5, 2022

Leonardo completes the acquisition of stake in Hensoldt

The transaction has been completed for a cash consideration of €606m.

Leonardo has completed the acquisition of a 25.1% stake in the German defence technology company Hensoldt.

The transaction has been closed for a cash purchase price of approximately $689m (€606m).

Leonardo acquired the shares in Hensoldt from Square Lux Holding II, a portfolio company controlled by funds advised by Kohlberg Kravis & Roberts (KKR).

The contract was announced in April last year with the signing of an agreement with Square Lux Holding II.

Leonardo now serves as Hensoldt’s largest shareholder, alongside Kreditanstalt für Wiederaufbau (KfW).

This new investment will enable Leonardo to establish a long-term presence in the German defence market.

It also allows the company to strengthen its partnership with Hensoldt through initiatives to further the development of joint opportunities.

With this deal, Leonardo inaugurates a new partnership with the German defence company and contributes to the national growth of the respective industries.

Leonardo stated that the transaction is a step towards helping the company achieve its objective of acquiring a position in the European defence electronics market, as outlined in its “Be Tomorrow – Leonardo 2030” plan.

UBS and Deutsche Bank acted as the lead financial adviser and financial adviser to Leonardo, while Clifford Chance served as the legal adviser to Leonardo.

Hensoldt and Leonardo have worked on programmes such as the Eurofighter Typhoon as members of the EuroDASS consortium.

In October 2021, Leonardo was awarded a contract for the FWS-CS system by the US Army.

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