HANZA Accelerates the LYNX Program Through Acquisition of Defense Manufacturer
July 18, 2025 | HANZAEstimated reading time: 2 minutes
HANZA AB has signed an agreement to acquire the contract manufacturing division of Milectria, a group of companies focused on the defense sector. The transaction is a strategically important step in HANZA’s LYNX program, which aims to strengthen the company's position in industries such as defense and security.
Milectria is a contract manufacturer of electrical systems for military vehicles, weapon systems and other products for demanding environments. Annual sales from the acquired units amount to approximately SEK 300 million and the transaction adds approximately 300 new employees distributed across one production facility in Finland, two in Estonia and a unit for offset business in Abu Dhabi.
- The acquisition comprises 100% of the shares in Milectria OY, 100% of the shares in the associated real estate company Kiinteistö Oy Kanungin Karhu, and 100% of the shares in Milectria OÜ.
- The purchase price amounts to EUR 16.4 million, which on a cash and debt-free basis corresponds to an adjusted EBITA multiple of 4.9x for the rolling twelve months ending May 2025.
- The purchase price will be paid in cash upon closing and will be financed through cash and credit facilities.
- An additional purchase price of up to EUR 18 million may be payable, based on revenue growth during the period 2025–2027. The maximum additional purchase price is conditional upon Milectria more than doubling its revenue.
- Closing is expected to take place in September 2025, subject to customary closing conditions, including regulatory approvals, and restructuring of the target companies to transfer the parts of the business that do not comprise contract manufacturing to companies controlled by the sellers.
The acquisition strengthens HANZA's position in one of Europe's fastest growing industries The new security situation has created significantly increased demand for local manufacturing capacity for advanced defense-related products. HANZA is well positioned to meet this demand through its business model of customized, regional manufacturing solutions that encompass both mechanics and electronics. Furthermore, HANZA has extensive experience in manufacturing for the defense industry.
In March 2025, HANZA launched a special program, LYNX, with the aim of increasing the proportion of customers in the defense sector, while maintaining and strengthening capacity for other customer groups. The acquisition of Milectria is an important step in this initiative, as the Group gains four new units with specialist expertise in the defense industry, strengthening HANZA's delivery capacity to both new and existing customers in the sector. It also improves the ability to win new contracts.
The acquisition is expected to increase HANZA's sales, operating margin, and earnings per share from the 2025 financial year.
Comments from Management
“The acquisition is a strategic milestone in our LYNX program,” says Erik Stenfors, CEO, HANZA. “We are facing rapidly increasing demand from the defense industry, and this gives us a dedicated platform while creating room for growth in other segments.”
“We look forward to becoming part of HANZA,” says Tomi Kaukonen, CEO, Milectria. “Together, we will create a strong, long-term offering for the defense industry, where our competencies, customer relationships, and manufacturing facilities complement each other perfectly.”
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