What will Leonardo do with the American Drs

26 February 20213 years ago babelfish

All the first details on the listing on Wall Street of a part of Leonardo Drs, the American subsidiary of the Leonardo group. Facts, numbers and comments

Yesterday the Leonardo board of directors met to approve the listing project of Drs before the necessary approval of the board of the American subsidiary.

The return to the Stock Exchange – with a share of just under 25% – serves to raise cash for the parent company Leonardo but also to put hay in the farmhouse for possible acquisitions.

WHAT IS DRS

Leonardo Drs is the American subsidiary of the former Finmeccanica which is one of the suppliers of the Pentagon, the American army and "homeland security" entities.

THE RETURN TO DRS WALL STREET

So 13 years later Drs Technologies is preparing to return to the stock market, on Wall Street, after leaving the list when the then Finmeccanica when it was led by the CEO, Pierfrancesco Guarguaglini, decided to buy it for 5.2 billion, 3.4 billions of dollars at the values of that year.

THE EVALUATION OF DRS

The valuation of Drs would be higher than 3 billion, slightly less than the entire capitalization of Leonardo (3.93 billion).

THE NUMBERS OF THE LISTING

“Leonardo could collect about a billion euros or a little more. It will depend on the price (we reason on a value of at least three billion for all Drs) and on the quantity of shares sold, the basic hypothesis is 25%, it cannot be excluded that it will arrive at 30. Drs will be listed on the NYSE ", wrote Gianni Dragoni of Sole 24 Ore .

THE RESULTS OF DRS IN THE 9 MONTHS OF 2020

In the nine months of 2020, Leonardo Drs completed orders for € 2.262 billion, marking an increase of 12.8% compared to the € 2.005 billion of the same period of 2019. Revenues stood at € 1.719 billion, up by 6.4% compared to the 1.616 billion in the nine months of 2019. The EBITA was equal to 101 million euros, down by 1.9% compared to the 103 million euros of the same period of 2019. The Ros is increased to 5.9% compared to 6.4% in the nine months of 2019.

THE WEIGHT OF DRS IN THE ACCOUNTS OF LEONARDO SPA

Leonardo Drs orders represented 26.58% of the total orders placed by Leonardo Spa in the first nine months of 2020 (8.51 billion euros), revenues 19% of the total turnover of the group (9.025 billion euros ) and EBITA 20.32% (497 million euros).

DRS DATA IN 2019

In 2019, Leonardo Drs completed orders for € 2.611 billion, marking an increase of 7.1% compared to the € 2.438 billion of 2018. Revenues amounted to € 2.438 billion, up 23.1% compared to to 1.98 billion in 2018. EBITA was 186 million euros, an increase of 45.3% compared to 128 million euros in 2018. Ros went to 7.6% compared to 6.5 % of 2018.

Leonardo Drs orders represented 18.51% of the total orders placed by Leonardo Spa in 2019 (14.105 billion euros), revenues 17.68% of the total turnover of the group (13.784 billion euros) and EBITA 14.86% (1.251 billion euros).

THE STORY OF DRS SECONDO IL SOLE 24 ORE

In 2008 Finmeccanica announced on 12 May the agreement for the purchase of Drs at 81 dollars per share. It was the moment of the transition between the Prodi government and Berlusconi, whose Economy Minister Giulio Tremonti showed disappointment at being confronted with a fait accompli. But then he approved the capital increase of 1.2 billion (at 8 euros per share) to provide Finmeccanica with the resources for the purchase.

The acquisition was completed on October 22. According to data reported by R & S-Mediobanca, Drs was paid 3.6 billion dollars in cash, in addition to the assumption of 1.6 billion in net financial debt. According to the values in euros, indicated in Finmeccanica's 2008 financial statements, the group paid a consideration of 2.372 billion, in addition there was a contribution to the net financial debt of just over 1.2 billion. Therefore, the acquisition cost about 3.6 billion euros in cash and net debt.

However, there were no industrial synergies that Finmeccanica had imagined between Drs and its Italian companies. Given the strategic role of Drs, its activities have been proxy shielded. The former Finmeccanica cannot give indications to the management, which is American and independent from the Italian boss (but not from the Pentagon). Guarguaglini had limited the proxy part to about one third of Drs. In the subsequent management Giuseppe Orsi accepted the American request to increase the proxy to 100 percent. Thus the distance between Drs and Leonardo has increased. And goodbye effects on Italian industry.

Here's how Leonardo Drs is doing (investment banks are gassing for the IPO)

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/che-cosa-fara-leonardo-con-lamericana-drs/ on Fri, 26 Feb 2021 08:06:00 +0000.