Saab announces TKMS acquisition terms

Saab and ThyssenKrupp Industrial Solutions have entered into an agreement that will see Saab acquire ThyssenKrupp Marine Systems (TKMS) for a purchase price of £29.6 million.

Saab is acquiring TKMS as part of plans to increase its capabilities in the naval domain. Saab and ThyssenKrupp Industrial Solutions signed a non-binding Memorandum of Understanding regarding the acquisition of the Swedish shipyard in April 2014.

TKMS', formerly Kockums', operations are based in Karlskrona, Malmö and Muskö, Sweden; where it designs, builds and maintains naval systems such as submarines and surface vessels for navies worldwide. Other successful products include air independent propulsion (AIP) systems based on Stirling technology, submarine rescue vehicles and mine counter measures systems.

Håkan Buskhe, president and CEO, Saab, said: ‘We are looking forward to welcoming Kockums and its personnel to Saab. This acquisition marks the start of a new era in Kockum’s notable history. The knowledge that the employees possess for developing and producing submarines is unique and strengthens all of Saab.’

Gunilla Fransson, head of business area security and defence solutions for the company, added: ‘Integration and development efforts will now begin to ensure that operations reach their full capacity. It is important to achieve synergies with Saab’s current naval business. This process must be allowed to take its course, but at the same time we begin deliveries of development, maintenance and production work to the Swedish market.’

TKMS will be integrated into Saab’s business area Security and Defence Solutions. The transaction is subject to approval by the board and the supervisory bodies of ThyssenKrupp Group and the Swedish Competition Authority. These approvals are expected during July 2014. Thereafter the takeover of TKMS will be completed.