Italian aerospace and defence group Finmeccanica has poured cold water on suggestions that it close to buying local rocket maker Avio.
Speaking to reporters at the Paris Air Show yesterday, Avio CEO Giuliano Lasagni said a deal to sell a majority…
Italian aerospace and defence group Finmeccanica has poured cold water on suggestions that it close to buying local rocket maker Avio.
Speaking to reporters at the Paris Air Show yesterday, Avio CEO Giuliano Lasagni said a deal to sell a majority stake could happen this year now that due diligence has started.
However, Finmeccanica CFO Gian Piero Cutillo was later cited saying it was in no rush, and that there are “more talks than due diligence” at the moment.
He said the state-controlled group is still primarily focused on a multi-year strategy that it announced in January to streamline operations.
This cost-cutting ‘industrial plan’ had included the possible sale of its US unit DRS Technologies, whose products range from satellite communication terminals to avionic stationkeeping equipment. But the company is now reportedly pulling back from that sale after DRS returned to profitability.
The sale of Avio, best known for building Europe’s Vega launcher, has been years in the making.
It holds assets that were left over after Cinven, a private equity firm that owns 81% of the group, sold Avio’s aviation unit in December 2012 to General Electric. Finmeccanica owns 14% of Avio.
Following the sale to GE, the space assets attracted suitors including French satellite makers Astrium (Airbus DS) and Thales, as well as Paris-based aerospace giant Safran, with preliminary bids targeting the €300m mark due in July 2013.
However, the sale process was ultimately scrapped following the indecision of Italy’s government, and a raft of Vega contract wins that would increase its value.
Lasagni told reporters yesterday that Finmeccanica would likely look to buy Avio in partnership with Airbus DS and Safran, which recently created a joint venture for their launch activities.
Europe’s launch sector is in the midst of a far-reaching restructuring to remain competitive in an industry that has been shaken up by US newcomer SpaceX’s low prices.
This restructuring will see the Airbus Safran Launchers JV control Arianespace, following the sale of the French government’s stake in the launch services provider.
SatelliteFinance understands that Rothschild had been advising Cinven on the bids for Avio.
Cinven has declined to comment on the sale speculation.
