Finmeccanica goes to America- the Drs case study
2014
Study of an Acquisition
THE CASE OF FINMECCANICA & DRS TECHNOLOGIES
ALESSANDRO LUCI | DANIELE MAGLIO | MARCO MARANA | RAFFAELE MASI
SILVIA MATTEI | GIULIA MEZZANOTTE MARCO DEL SAVIO
LUISS GUIDO CARLI |Corporate Strategies a.a 2013/2014
In this paper we will analyze the dynamics of the biggest acquisition by an European company in the field of the American defence in the history, the one between the Italian-owned
Finmeccanica and the American Drs Technologies.
Finmeccanica is a symbol of the Italian proud worldwide, and through this acquisition will become the second major foreign supplier of the Pentagon.
In the first part of our work, we will go a bit in depth into the history and strategic moves of the two companies separately. Finmeccanica’s strategy in particular will be crucial to understand the reasoning of this acquisition, together with the so called globalization of the Defence market, that is taking place worldwide and that in the last decades is re-shaping the whole defence industry.
This paper will go further in depth in analyzing the American defence industry and its role in the global economy, we will discover the financial repercussions of the acquisition for both companies and only in the end we will come up with both a short-term and a long-term paramount of the acquisition after the deal was closed.
The main questions we will answer in this paper are:
Why should this operation be of such importance to Finmeccanica?
What does it mean to become one of the top player suppliers in the American Defence industry? Why did Finmeccanica pay such a large price to acquire Drs Technologies?
Was the acquisition of Drs worth such a big price after all?
1
ABSTRACT
3
Finmeccanica
History
6
Swot Analysis
10
Porter’s 5 Forces
10
Drs Technologies
History
14
Company Organization
14
Swot Analysis
15
Porter’s 5 Forces
15
Why Drs: A Matter Of Complementary Synergies
18
Study of an Acquisition
THE CASE OF FINMECCANICA & DRS TECHNOLOGIES
ALESSANDRO LUCI | DANIELE MAGLIO | MARCO MARANA | RAFFAELE MASI
SILVIA MATTEI | GIULIA MEZZANOTTE MARCO DEL SAVIO
LUISS GUIDO CARLI |Corporate Strategies a.a 2013/2014
In this paper we will analyze the dynamics of the biggest acquisition by an European company in the field of the American defence in the history, the one between the Italian-owned
Finmeccanica and the American Drs Technologies.
Finmeccanica is a symbol of the Italian proud worldwide, and through this acquisition will become the second major foreign supplier of the Pentagon.
In the first part of our work, we will go a bit in depth into the history and strategic moves of the two companies separately. Finmeccanica’s strategy in particular will be crucial to understand the reasoning of this acquisition, together with the so called globalization of the Defence market, that is taking place worldwide and that in the last decades is re-shaping the whole defence industry.
This paper will go further in depth in analyzing the American defence industry and its role in the global economy, we will discover the financial repercussions of the acquisition for both companies and only in the end we will come up with both a short-term and a long-term paramount of the acquisition after the deal was closed.
The main questions we will answer in this paper are:
Why should this operation be of such importance to Finmeccanica?
What does it mean to become one of the top player suppliers in the American Defence industry? Why did Finmeccanica pay such a large price to acquire Drs Technologies?
Was the acquisition of Drs worth such a big price after all?
1
ABSTRACT
3
Finmeccanica
History
6
Swot Analysis
10
Porter’s 5 Forces
10
Drs Technologies
History
14
Company Organization
14
Swot Analysis
15
Porter’s 5 Forces
15
Why Drs: A Matter Of Complementary Synergies
18
Bibliography: 2 Remarks of Jeffrey P. Bialos, Deputy Under Secretary of Defense for Industrial Affairs, Credit Suisse First Boston Aerospace Finance Executive Symposium, April 27, 2000. TABLE 1 U.S. Contractor Presence for Selected Military Platforms (1990–2000)3 The 50% of the mergers involving publicly traded acquirers in the defence industry between