Fincantieri has acquired Leonardo’s torpedo unit for up to €415 million (U.S. $446 million), bolstering the former’s ambition in undersea warfare. The state-controlled shipyard Fincantieri will pay €300 million, plus an additional sum of up to €115 million based on the unit’s performance in 2024. Fincantieri, which builds submarines for the Italian Navy, will undertake a capital increase of €400 million to cover the purchase. The torpedo unit, originally known as WASS, saw €160 million in revenue last year and holds a 50% stake in GEIE EuroTorp. Leonardo, the parent firm, is increasingly focused on planes, helicopters, and electronics.
WASS, originating from John Whitehead in 1875 in Fiume (now in Croatia), aligns with Fincantieri’s undersea business strategy. Fincantieri predicts the sector will be worth €100 billion between 2024 and 2028. Undersea technology is crucial in the Mediterranean Sea due to growth in surveillance and defense activities. Fincantieri is partnering at a sub-sea center in La Spezia, Italy, and collaborating with Leonardo on drones for protecting undersea cables and pipelines.
Last year, Fincantieri acquired local firm Remazel for sub-sea operations in the oil and gas sector and partnered with WSense, an Italian startup for underwater communications. Fincantieri is working with C.A.B.I. Cattaneo, an Italian supplier of underwater vehicles. Tom Kington is the Italy correspondent for Defense News.
