Fjord Defence buys Sweden's Microprecision for $302,000 to scale ammunition parts
What's the deal? Fjord Defence Group's wholly owned subsidiary PartnerTech Karlskoga has agreed to acquire 100% of Swedish precision manufacturer MicroprecisionDealroom has a profile for this one. Try Dealroom → for about $302,000, expanding its high-precision metal component capacity for the Nordic and European defence sector. Fjord Defence, an Oslo-listed company founded in 2016, runs a "buy & build" strategy focused on established defence businesses.
What's the endgame? Microprecision brings advanced CNC machining for ammunition components, including medium- to large-calibre shell casings, precision fuses, and projectile assemblies. The deal adds turnkey capacity rather than building from scratch, which the Group calls a more capital-efficient route to growth.
Why now? PartnerTech recently secured long-term agreements with a major defence customer, and Microprecision's manufacturing permit and ISO certifications allow immediate contract execution without extra qualification lead times. Over 80% of Microprecision's output is recurring business.
By the numbers: Microprecision reported 2025 revenue of US$12.3M with zero EBITDA. Management expects 2026 revenue near US$8.46M and slightly negative EBITDA, with topline growth accelerating from 2027. Its 4,400sqm facility and 44 specialists could support annual revenue of US$24.2M–US$30.2M through expanded shifts.
What could go wrong? The near-term earnings contribution looks thin given the forecast negative EBITDA for 2026, and the acquisition still requires regulatory clearances. The company currently operates sub-scale.
Chief executive Jon Asbjørn Bø said the deal secures "both the right people and an advanced machine park at a fraction of its replacement cost," calling it a building block toward a Group target of US$48.4M–US$60.4M in EBITDA by 2029.
The signal: The bolt-on fits a wider European push to expand defence production and secure local supply chains. BAE Systems BoforsDealroom has a profile for this one. Try Dealroom → completed its acquisition of Swedish precision-machining supplier Aston Harald in May, citing capacity and delivery security — a sign of how tier-1 demand is driving consolidation among small, specialist machining firms.
Read more: newsweb.oslobors.no
Image credit: Generated with Gemini
