PARIS – Belgian engineering firm John Cockerill agreed on Monday to buy French military vehicle maker Arcus from Volvo Group for an undisclosed sum, adding a range of wheeled armored vehicles and military trucks to its product offering. It was announced that.
John Cockerill said in a statement that the combination of the defense division and Arcus is expected to generate defense revenue of €1 billion (US$1.1 billion) by 2026, and the acquisition expands the company’s footprint in the global land defense market. Then he added.
The contract will more than double John Cockerill’s defense business by integrating John Cockerill’s turrets and firing systems, which supply 90% of the French army’s wheeled vehicles. Arquus already offers a fire support version of his VAB Mk3 armored personnel carrier with his 90 mm turret manufactured by John Cockerill.
“John Cockerill Defense and Arcus’ proposed combination of light tank turrets and vehicles will create important synergies, resulting in more innovative and more competitive vehicles to equip land forces around the world. John Cockerill chief executive Francois Michel said in a statement.
Michel said the planned acquisition would be “transformative” for the European defense industry in the field of light tanks. The acquisition will enable John Cockerill to offer “the highest levels of quality and cost competitiveness” for both light tank turrets and military vehicles, the company said.
The Volvo Group has announced that it has entered into an option agreement with John Cockerill Defense giving it the right to sell Arcus, following mandatory consultations with employee representatives, and is expected to be finalized by the end of March. It is said that there are plans to do so. The Swedish company said the deal would require government approval to complete.
John Cockerill Defense and Arquus aim to have 2,000 staff by 2026, with major operational centers in Belgium, France, India and Saudi Arabia. John Cockerill said the integration would be a major step towards industrially supporting the French and Belgian armies’ coordinated vehicle procurement programmes.
In January 2023, the Belgian company combined its French defense business with its training simulator division Agris, as part of its commitment to France’s defense industry and technology base.
John Cockerill reported sales of €1.05 billion in 2022, including a reduced contribution from the defense business, where sales in 2021 were approximately €240 million. In 2022, Arcus had sales of 559 million euros and operating profit of 21.5 million euros, according to its filing. .
The Volvo Group announced that it will charge SEK 700 million (US$87 million) for the sale of Arcus against its operating profit in the fourth quarter of 2023.
Rudy Ruitenberg is Defense News’ European correspondent. He started his career at Bloomberg News and has experience reporting on technology, commodity markets, and politics.