Gunship
8th Dec 2005, 08:35
Defence group Saab Grintek has signed an agreement to acquire Aerospace Monitoring and Systems (Pty) Ltd in a R30m deal, it was announced on Tuesday.
The finalisation of the acquisition is planned for April 2006.
The direct investment is another step in Saab's strategy to actively engage and expand the South African defence industry on a global scale within its strategic niches, as well as continue its expansion into the South African and African markets, the Swedish group said.
Saab Avitronics president Björn Erman said: "AMS product portfolio and markets fits very well into our avionics business, especially in the areas of safety, monitoring and digital recording systems, where together we will be a significant global player."
Upon completion of the deal AMS will form part of Saab Avitronics, a Saab business unit focusing on avionics and electronic warfare systems, which already has operations in both Sweden and South Africa.
AMS will benefit from Saab Grintek's expertise and a well-developed global distribution footprint in a very active and increasingly competitive avitronics market.
Christo Weder, CEO at AMS said: "We are excited about the excellent strategic fit between our products, markets and cultures and look forward to expanding our business under the Saab brand."
AMS focuses on proprietary Aircraft Monitoring and Recording Systems for the global aerospace and defence market.
The company is based in Midrand and employs 75 people.
Currently 95% of AMS's turnover is generated by export.
Saab Grintek also anticipates a positive spin-off from the investment to translate into job creation in the long-term.
The acquisition is subject to approval by the regulatory authorities and is likely to be effective beginning of April 2006.
Like Saab Avitronics' current electronic warfare operations in South Africa, AMS will, from a legal point of view, be part of Saab Grintek Defence (Pty) Ltd, which is jointly owned by Saab Grintek (Pty) Ltd and Saab AB.
LINK (http://www.fin24.co.za/articles/companies/display_article.asp?Nav=ns&lvl2=comp&ArticleID=1518-24_1846378)
The finalisation of the acquisition is planned for April 2006.
The direct investment is another step in Saab's strategy to actively engage and expand the South African defence industry on a global scale within its strategic niches, as well as continue its expansion into the South African and African markets, the Swedish group said.
Saab Avitronics president Björn Erman said: "AMS product portfolio and markets fits very well into our avionics business, especially in the areas of safety, monitoring and digital recording systems, where together we will be a significant global player."
Upon completion of the deal AMS will form part of Saab Avitronics, a Saab business unit focusing on avionics and electronic warfare systems, which already has operations in both Sweden and South Africa.
AMS will benefit from Saab Grintek's expertise and a well-developed global distribution footprint in a very active and increasingly competitive avitronics market.
Christo Weder, CEO at AMS said: "We are excited about the excellent strategic fit between our products, markets and cultures and look forward to expanding our business under the Saab brand."
AMS focuses on proprietary Aircraft Monitoring and Recording Systems for the global aerospace and defence market.
The company is based in Midrand and employs 75 people.
Currently 95% of AMS's turnover is generated by export.
Saab Grintek also anticipates a positive spin-off from the investment to translate into job creation in the long-term.
The acquisition is subject to approval by the regulatory authorities and is likely to be effective beginning of April 2006.
Like Saab Avitronics' current electronic warfare operations in South Africa, AMS will, from a legal point of view, be part of Saab Grintek Defence (Pty) Ltd, which is jointly owned by Saab Grintek (Pty) Ltd and Saab AB.
LINK (http://www.fin24.co.za/articles/companies/display_article.asp?Nav=ns&lvl2=comp&ArticleID=1518-24_1846378)