PARIS — Renault Trucks Defense said July 26 it has agreed to buy Panhard, a small armored vehicle maker, for an undisclosed amount.
“Renault Trucks Defense, which is included in the Volvo Group’s Governmental Sales business area, is to acquire the French automotive manufacturer Panhard,” the company said in a statement.
Renault Trucks Defense (RTD) is a subsidiary of the Swedish trucks group Volvo.
“This is a very good transaction for French industry,” Panhard executive Christian Mons said.
The merger deal is one that should have been done in the last five to six years, and goes in the right direction toward strengthening the commercial and industrial capability of the French land systems industry, Mons said.
“The transaction is not anticipated to have any significant impact on the Volvo Group’s earnings and financial position,” RTD said. No financial details were available. Generally, the price paid for a profitable company in this sector is equal to about one year’s sales.
The purchase is due to be completed in the fourth quarter of 2012, RTD said. The acquisition is subject to regulatory approval.
Panhard had 2011 operating profit of 9.4 million euros ($11.4 million) on sales of 81 million euros, and employed 300 staff.
An acquisition of Panhard is a major step toward a target set by RTD managers to hit 700 million euros in sales by 2015, compared with 250 million euros in 2011. RTD employs around 500 staff.