CSG, Leonardo-Rheinmetall, Indra, Bain Capital, and KPS tabled non-binding offers
IDV-Iveco Defence Vehicles, a subsidiary of Exor’s portfolio company Iveco, is attracting non-binding offers of financial sponsors and trade buyers on the ground of an enterprise value of 1.5 billion euros, Bloomberg reported. The asset that belongs to the Agnelli-Elkann Family attracted the bids of Indra, Bain Capital and KPS. MF-Milano Finanza said that Czechoslovak Group (CSG)’offer could be higher than the amount that Leonardo-Rheinmetall proposed.
On 23 May, Friday, Milan-listed Iveco’s market capitalization rose by 3.36% and hit its all time peak of 17,22 euros per share (see here a previous post by BeBeez) while the FTSE MIB index closed at -2% as US President Donald J. Trump threatened the EU to impose 50% tariffs on imports from 1 June, Sunday.
In 2024, IDV generated a turnover of 1.13 billion and operative profits of 113 million (press release). In 1Q25 revenues amounted to 278 million (+30.5% on annual base), the adjusted ebit to 36 million, with a 12.9% ebitda margin (10.3% in the previous year) (press release).
IDVs is an attractive asset for strategic and financial players as global demand for armoured and military vehicles increased as geopolitical tensions escalated and European military spending has increased. Iveco Group’s board reportedly aims to spin-off IDV in 2025 while analysing the proposals of bidders.
Bain Capital and KPS Capital are considering such a deal as the expansion of European military expenditure is an opportunity. Michal Strnad heads Czech conglomerate CSG which recently acquired Italian weapons producers Fiocchi Munizioni and Armi Perazzi, and aims to integrate IDV technologies with its portfolio company Tatra.
Olof Persson, Iveco’s ceo, aims the company to focus on the core business of commercial vehicles and innovation in the truck field. The European players of such sectors straggled in 1Q25 as they faced a demand contraction with a 32% drop in European production in the first quarter, leading to a decrease in industrial ebit and heavy cash absorption.
The analysts of Milan-listed Equita say that Italian and German defence companies Leonardo and Rheinmetall are frontrunning for IDV as their bid as a solid political and industrial approach that may not arise golden power issue. Furthermore, financial sources reportedly said that Spain’s Indra may not table a binding offer and join Leonardo-Rheinmetall. Bain Capital and KPS Capital are considering such a deal as the expansion of European military expenditure is an opportunity. Michal Strnad heads Czech conglomerate CSG which recently acquired Italian weapons producers Fiocchi Munizioni and Armi Perazzi, and aims to integrate IDV technologies with its portfolio company Tatra.
However, Iveco could also list IDV. Equita’s analysts said: “We are aware that in light of the current market multiples of companies in the sector, the asset’s enterprise value should be higher [than 1.3 billion], but we believe that the possible intervention of the golden power does not allow to maximise the valuation”.
Leonardo’s ceo Roberto Cingolani said “We submitted a non-binding offer. We only intend to make an industrial, not a financial investment, and we are not prepared to spend more than the fair price”.
However, stock market traders expect a competitive auction to start for IDV as the European leadership for defence automotive is at stake. In May 2025, IDV signed a partnership with BAE Systems Hägglunds and started a strategic collaboration in the Italian market for the BvS10 vehicle of the British group, world leader in off-road solutions (press release). IDV also won the WTB call for tender that the Materials and Information Technology Command of the Dutch Ministry of Defence launched for the supply and logistic support of 785 military trucks (press release). In April 2025, IDV reiterated its commitment for supplying the Brazilian army with land platforms (press release) and in March 2025 signed a strategic alliance for the modernisation of the military truck fleet of the Greek Army (press release).
