Celsius, Sweden's leading defence electronics group, has bought a 49% share in Grintek Avitronics, South Africa's biggest passive electronic warfare development house, for R30 million ($4.8 million). The deal marks the first direct Swedish investment in the South African defence industry.
Avitronics produces and integrates a range of passive sensors, including radar warning receivers, laser detectors and passive missile approach warning systems.
Lars Josefsson, chief executive of Celsius, says Avitronics has developed several products that would complement the Celsius line of passive warning systems.
Avitronics systems are being installed on Rooivalk attack helicopters that are going into service with the South African air force and are likely to equip at least some of the 40 Agusta A109 helicopters it is planning to buy.
Grintek chairman Zoli Kunene, the controlling shareholder of Avitronics, says the purchase would allow Avitronics to tap Celsius markets, mainly in Australia, Europe and the USA. Celsius would gain access to African and Middle Eastern markets where Avitronics has a stronger presence.
Celsius more than doubled its pre-tax profits last year from SKr280 million ($34 million) to SKr590 million. Sales were up 23% to SKr14.3 billion.
Source: Flight International