Alvis in pounds 80m Swedish deal
Friday 26 September 1997
Alvis, best known for the Scorpion and Stormer armoured tracked vehicles, is paying pounds 80m for the Swedish group Hagglunds, maker of the CV90 infantry fighting vehicle.
The CV90, a similar but more modern version of the GKN Warrior, will be the platform that Alvis will use to bid for a Ministry of Defence contract for up to 1,000 multi-role armoured vehicles. The contract is due to go out to tender in the next two years and could be worth pounds 1bn over the lifetime service of the vehicles.
The Hagglunds deal will create a group with an order book of pounds 550m to rank in terms of size alongside GKN and Vickers in the fighting vehicles industry.
Hagglunds has an order book worth pounds 400m - the bulk of which is accounted for by pounds 320m in outstanding orders from the Swedish and Norwegian governments for the CV90. Its other main product is the Bv 206 all-terrain carrier, world-wide sales of which now exceed 10,000. Alvis has pounds 150m orders in the UK and overseas.
Other potential markets for the CV90 include Switzerland, which has a requirement for 300 infantry fighting vehicles, and Asia.
Nicholas Prest, chairman and chief executive of Alvis, said the two groups were complementary in terms of product range, markets and technology. Alvis has customers in more than 40 countries, including South-east Asia, the Middle East and Latin America while Hagglunds has tended to concentrate more on Europe.
The acquisition will be part funded by a pounds 20m one-for-four rights issue with the balance funded from Alvis's cash resources and borrowings. Alvis has net cash of pounds 40m while Hagglunds has pounds 60m cash in its balance sheet.
Mr Prest said he expected the acquisition to be earnings enhancing in the first full-year. In the year ended last December, Hagglunds made a pre-tax profit of 143m Swedish kroner (pounds 11.7m) on sales of Kr1.26bn (pounds 104m).
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Penis size: Study revealing 'what's normal' sends international media into meltdown
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Ayesha Ali death: Mother and her girlfriend found guilty of manslaughter of eight-year-old
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...