Iveco Group announces agreement to sell Defence Business to Leonardo
Iveco Group N.V. (EXM: IVG) announces the signing of a definitive agreement to sell its Defence Business (IDV and ASTRA brands), to Leonardo S.p.A. (BIT: LDO), a leading European defence and security company, for an enterprise value of €1.7 billion. The transaction will create an Italy- based, European champion in the land defence segment with the scale and capabilities to compete globally.
On 7th February 2025, Iveco Group announced that it would separate its Defence Business from its commercial vehicles business to provide both with greater focus and strategic flexibility. The landmark transaction announced today means that the employees of IDV and ASTRA will become an integral part of a significantly larger business, that will be better able to invest and compete in a segment whose strategic importance is paramount. By combining IDV and ASTRA’s mobility solutions and protected platforms with Leonardo’s advanced systems, the partnership will deliver full-spectrum, land defence capabilities for Italy, Europe and at a global level.
The transaction is expected to be complete no later than 31st March 2026, subject to customary regulatory approvals and carve-out completion. On completion, Iveco Group intends to distribute the net proceeds of the transaction, subject to closing adjustments, to shareholders via an extraordinary dividend.
Olof Persson, CEO of Iveco Group, commented: “This agreement propels Iveco Group’s Defence Business into its proper dimension as a key contributor alongside Leonardo in the creation of a focused, world-class player in land defence activities. Our colleagues in the Defence Business – who have done a tremendous job in building this business, responding to the growing need both for land defence vehicles and the technologies we have developed – will become part of a group with the scale and integrated capabilities to compete on all levels and for all platforms, with all the positive potential for innovation and continuous development.”
In the context of the transaction, Goldman Sachs Bank Europe SE, Succursale Italia acted as financial advisor and Freshfields acted as legal advisor to Iveco Group.
