The new SAAB forms
9 March 2000
Two of Sweden's most knowledge intensive companies, Saab and Celsius are merging to create Northern Europe's leading high-technology company. Presenting details of the new company yesterday Bengt Halse, Chairman of Saab said that the companies had broad and in-depth knowledge that comprised everything from aviation technology, aerodynamics, space technology and underwater technology, to areas such as information gathering, command and control, precision engagement, sensors, image processing and communication technology.
"With the acquisition of Celsius, Saab is further strengthening its position as a growth oriented and innovative knowledge company, with the ambition and ability to be the natural choice of customers. We will continue to be a leading supplier in our home markets. Independently, or together with partners, we will focus on international growth markets within our areas of expertise. In addition, we have the ability to take our advanced technology to the civilian markets, where it is in demand", said Halse.
Annual cost saving synergies are expected to total SEK 400 million and one-time costs for the merger amount to SEK 600 million
Halse said that from "...an international perspective, the BAE SYSTEMS partnership and partial ownership is of great importance. The Saab that is evolving will gain even greater utilization of this link to the rest of Europe and to other international markets. This will also result in noticeable marketing synergies."
Halse reviewed the various sectors that make up the new company:
Infomatics, managed by the former President of Celsius, Lars Josefsson, who is also a senior vice-president in Saab, comprises Saabs operations within command and control, and information systems. The business area also develops, manufactures and sells advanced systems for electronic warfare, avionics, sensors, simulation and training as well as signature management..
Aerospace, led by Ake Svensson, former manager of Future Products and Technology, has the comprehensive systems integration competence that is required in order to construct entire aerospace and defense systems, and to, in cooperation with others, develop total and partial solutions for the fighter aircraft of the future. Today, Gripen, the only fourth-generation fighter aircraft in operational service is Aerospace's most important product. From a longer perspective, Aerospace is well advanced in the development of tomorrow's aerospace technology and is working on the solutions, which within 20-30 years, are expected to begin replacing the technology that Gripen represents. Aerospace also develops and produces subassemblies for commercial aircraft in cooperation with the Airbus-company and others.
Dynamics develops missile systems, mobile anti-tank weapons and underwater systems for use in the air, on land and at sea. Dynamics foremost growth potential lies in the development and success of international programs and in continued export of the systems in focused product and market segments
Saab Ericsson Space develops and manufactures different types of space equipment. Space is a manufacturer of computer systems, microwave electronics and antennas as well as separation systems, and markets the business areas products throughout the entire accessible international market.
Aviation Services Aviation Services carries out commercial flight maintenance primarily in the US. The operation offers a wide selection of services in the maintenance market and also within asset management services such as leasing, and within the sales of aircraft engines, components and aircraft.
Some parts of the new company are outside Saab's primary focus. In the coming years, Saab will be reducing its commitments in the majority of these companies that are outside the core operations. In particular Saab is seeking to divest:
Celsius Aviation Services In order to provide Celsius Aviation Services the best possibilities to develop to its full potential, we are seeking to broaden the ownership of the company. The intention is to seek out new majority shareholders in Celsius Aviation Services, with a long-term interest and focus on the aviation market.
Bofors Weapon Systems has operations focusing on artillery pieces and ammunition as well as fire control. The intention is to seek out new majority shareholders in Bofors Weapon Systems with a long-term interest and focus on the current market.
In knowledge we trust!