Turkish firm Otokar inks deal to acquire Romanian defense firm Automecanica

By Goksel Yildirim and Emir Yildirim

ANKARA / ISTANBUL (AA) — Türkiye’s defense manufacturer Otokar signed a deal on Wednesday to acquire its Romanian partner Automecanica, a move aimed at expanding its production footprint in Europe.

Otokar is continuing production and delivery of Cobra II vehicles under an €857 million (approximately $1.02 billion) contract covering 1,059 units of the four-by-four tactical armored vehicle, awarded by Romtechnica, a company owned by Romania’s National Defense Ministry.

As part of the project, Otokar has already produced 781 vehicles in Romania.

The acquisition marks a step toward transforming Automecanica, Otokar’s local production partner for the Romanian tender, into the company’s European production facility.

Prior to negotiations with Automecanica shareholders, Otokar said that it had signed an agreement outlining the main principles of the share purchase. Under the deal, the Turkish firm plans to acquire shares representing 96.77% of Automecanica’s capital.

The value of the shares to be acquired is estimated at about $101.7 million, with the final amount to be determined at closing following adjustments related to net debt and working capital.

The transaction is expected to close by the end of April, subject to a detailed review of Automecanica by Otokar, the signing of a share transfer agreement, and approvals from Romania’s competition and national defense authorities.

Otokar may transfer its obligations under the agreement to its wholly owned subsidiary, Otokar Land Systems SRL.

Automecanica holds a 50% stake in Sisteme Aparare Romania (SAROM), a joint venture between Automecanica and Otokar SRL, Otokar’s Romanian subsidiary.

Automecanica has existing infrastructure, production facilities, and operating licenses in Romania.

Otokar is planning to carry out its activities under the tender for the four-by-four tactical armored vehicle Cobra II to be delivered to the Romanian Armed Forces through the joint venture it established with Automecanica.

The SAROM SRL will manufacture, market, and provide service support for Otokar's Cobra II in Romania.

Founded about 85 years ago, Automecanica initially focused on aircraft maintenance and parts production and has since developed a broad portfolio, including vehicle manufacturing, maintenance and repair services, special trailers and semi-trailers, electric city buses, containers, vehicle bodies, and specialized chassis.