EADS strategic partner of Finnish Patria
Paris, 21 June 2001
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Finnish Government and EADS finalised negotiations at Le Bourget Airshow
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Contract signature in Helsinki next Wednesday
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EADS investing EUR 42 million for 26.8 percent stake in Patria
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Industrial Framework Agreement between EADS and Patria
EADS European Aeronautic Defence and Space Company will become the strategic partner of the Finnish technology group Patria. As EADS announced on Thursday, negotiations were finalised at a top-level meeting at Le Bourget between Arto Honkaniemi of the Finnish Ministry of Trade and Industry, Patria CEO Jorma Wiitakorpi and the EADS CEOs Philippe Camus and Rainer Hertrich.
The signing of the contract for the acquisition of a 26.8 percent share in the Finnish technology group as well as the Industrial Framework Agreement between EADS and Patria is now planned for next Wednesday (27 June 2001) in Helsinki.
Following the partnership agreement between the Finnish Government and EADS announced in February, the partners have now agreed on the terms of the transaction. EADS will invest 42 million for a 26.8 percent stake in Patria by acquiring 16.1 percent of the Patria shares currently held by the State of Finland and by subscribing new shares to be issued by Patria.
EADS will nominate three out of nine members of the Board of Directors and will actively participate in the development of the future strategic direction of Patria.
The Industrial Framework Agreement will define the future industrial co-operation in such priority areas as joint marketing activities, manufacturing of aerostructures both for helicopters and civil aircraft and for joint activities in defence electronics. Other areas like space are being explored.
Patria is currently bidding for work packages on Airbus A380 as risk-sharing partner. Significant prospects in digital battlefield applications are being discussed between Patria and EADS/SDE.
Patria's CEO Jorma Wiitakorpi said: "The strategic partnership will strengthen Patria and support the expansion of its business activities by, for example, opening new possibilities for industrial cooperation and new export channels. It will also enhance Patria's ability to meet the Finnish and other Nordic countries' requirements both in the commercial and defence fields."
EADS CEOs Philippe Camus and Rainer Hertrich said: "We welcome the leading Finnish aerospace company as a partner of EADS. Our partnership with Patria is a further move towards the integration of the European aerospace industry. It shows once again that EADS is a driver of European consolidation in our industry.
Today, Patria's core business includes products and services in aerospace, defence and telecommunications. Among the most promising future products are the Advanced Mortar System (AMOS), the Armoured Modular Vehicle (AMV 8x8) and the Night Vision Device. The Finnish Government, Patria and EADS intend to consider potential partners for the non-aerospace activities of Patria.
Patria operates internationally as a technology group. Production facilities are mainly located in Finland with some facilities in Sweden. In 2000 Patria had net sales of EUR 209 million (1999: EUR 193 million) and showed an increased Operating Profit of EUR 9.7 million (1999: EUR 2.8 million) while doubling order intake up to EUR 426 million. Today, Patria is a 100 percent state owned company with more than 2,200 employees.
The contracts are subject to the approval by competition authorities. A deal closing is expected for July 2001.
