Renault Trucks Defense, a member of the Swedish Volvo Group’s Governmental Sales business area, announced it is acquiring the French armored vehicle manufacturer Panhard. The transaction is expected to be finalized during the fourth quarter of 2012, following receiving the required approval from the French authorities.
The deal was in the making for several years, with Panhard seeking to divest its market leading position given the expected delay in decision on on the next wave of acquisition programs for the French Army, under the Scorpion program. Panhard was aiming for part of the program, namely the armed reconnaissance vehicles, while Renault and Nexter would seek ‘coopetition’ on the majority of the program – replacement of the French Army infantry fighting vehicles and armored personnel carriers. With only two competitors left, both companies are likely to win enough business to maintain long term health.
Panhard is a private company with about 300 empployees, with long background in the car industry. The company specializes in manufacturing light transport vehicles adapted for defense operations. In 2011, Panhard reported sales of EUR 81 Million and operating profit amounted to EUR 9.4 Million.
Renault Trucks Defense is included in the Volvo Group’s Governmental Sales business area. The operation comprises primarily of production and sales of vehicles adapted for operations in defense, security and international projects. Renault Trucks Defense has approximately 500 employees, mainly in France.