John Cockerill announced Monday it has agreed to buy Arquus from Volvo Group for an undisclosed amount, adding wheeled armored carriers and military trucks to its product line.
A statement from John Cockerill said the acquisition of Arquus will allow the company to increase its footprint in the global land defense market by €1 billion (U.S. $1.1 billion) by 2026.
As a result of the deal, John Cockerill’s defense business would more than double, combining its turrets and firing systems with the French army’s wheeled vehicles supplier. With a 90mm turret from John Cockerill, Arquus already offers a fire-support version of its VAB Mk3 armored personnel carrier.
“The combined offer of light tank turrets and vehicles from John Cockerill Defense and Arquus will generate important synergies that will result in more innovative and more competitive vehicles to equip land forces around the world,” John Cockerill chief executive Francois Michel said in the statement.
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It is expected that the planned acquisition will be “transformative” for the European light tank industry. With the acquisition, John Cockerill will be able to provide light tank turrets and military vehicles with “the highest level of quality and cost competitiveness,” according to the company.
After mandatory consultations with staff representatives, Volvo Group expects to finalize an option agreement with John Cockerill Defense by the end of March that gives the company the right to sell Arquus. The Swedish company said government approvals would be required for the transaction to close.
A total of 2,000 people are expected to work for John Cockerill Defense and Arquus by 2026, with major operational centers in Belgium, France, India, and Saudi Arabia. John Cockerill said the combination would significantly support French and Belgian land forces’ coordinated vehicle sourcing programs.
As part of its commitment to France’s defense industrial and technological base, the Belgian company merged its French defense business with its Agueris training-simulator unit in January 2023.
According to the company filings, John Cockerill reported 2022 sales of €1.05 billion, which included a declining contribution from the defense business, which posted revenue of around €240 million in 2021. Arquus reported revenue of €559 million and operating profit of €21.5 million in 2022.
Arquus’ sale will cost Volvo Group 700 million Swedish kronors (U.S. $87 million) against fourth-quarter operating income in 2023.
