Italy’s Finmeccanica last week completed is $5.2 billion acquisition of DRS Technologies, establishing a larger footprint in the United States for its defense business.
“Today begins a new era for Finmeccanica,” Pier Francesco Guarguaglini, chairman and CEO of Finmeccanica, said in a statement. “The acquisition of DRS further solidifies our position as a top-tier international competitor and reinforces our commitment to the U.S. market, industrial base and, most importantly, the American armed forces, establishing a strong transatlantic Defense Electronics capability.”
The deal will add over $3 billion to Finmeccanica’s $21 billion revenue base and expand its presence in North America from about 11 percent of total sales to around 23 percent (Defense Daily, May 14).
DRS will operate as a U.S. subsidiary of Finmeccanica under agreements with the U.S. Department of Defense, including a plan to mitigate foreign ownership control and influence.