Summa Defence Plc Company announcement, inside information 20 October 2026 at 22:00 EEST
Summa Defence Plc's subsidiaries Aquamec Oy ("Aquamec") and Lännen Tractors Oy ("Lännen Tractors") have today signed and completed the sale of Aquamec's Watermaster business and the Watermaster inventory owned by Lännen Tractors to Watermaster-Aquamec Oy, a subsidiary established for the transaction by the Dutch company Futurum Navum Beheer B.V. ("Futurum"). The Watermaster business and inventory were transferred to the purchaser upon signing of the transaction agreements. The shares in Aquamec are not included in the transaction with Futurum. In connection with the transaction, Summa Holding Oy has sold its shares in Aquamec to Lännen Tractors in an intra-group transaction, and Aquamec has become a subsidiary of Lännen Tractors. In addition, Lännen Tractors and Futurum entered into a manufacturing and services agreement of indefinite duration, under which Lännen Tractors will continue manufacturing Watermaster machines in Loimaa.
The transaction forms part of the strategic review announced by Summa Defence Plc on 15 May 2026, aimed at supporting the Group's long-term strategy, developing its capital structure and growing its core businesses in the defence sector. Following completion of the transaction, the Watermaster business is no longer part of the Summa Defence Group.
Aquamec develops amphibious dredgers under the Watermaster brand. In 2025, Aquamec's net sales were EUR 11.3 million and its operating profit was EUR 1.3 million. Most employees of the Watermaster business will transfer to the purchaser on their existing terms of employment.
Futurum is a private investment company associated with the Dutch van Noordenne family, which has extensive experience in the dredging and maritime sectors.
"As a 5th generation family business in production and operation of dredgers, we are looking forward to work together on this beautiful and innovative product and its great team. The product is sold worldwide and can make a big change in places struggling with water. Together we can Master the Water and help people worldwide," says Cees-Wim van Noordenne, CEO of Futurum Group.
"The sale of the Watermaster business supports our focus on our core defence and dual-use businesses and reduces the Group's future financing requirements. Lännen Tractors will continue manufacturing Watermaster machines in Loimaa," says Robert Blumberg, CEO of Summa Defence Plc.
Purchase price and earn-out
The total fixed cash consideration for the transaction is approximately EUR 2.2 million, of which EUR 1.0 million relates to Aquamec's business and approximately EUR 1.2 million to the Watermaster inventory, jigs and moulds owned by Lännen Tractors. The fixed consideration was paid upon completion of the transaction.
In addition, Aquamec may receive an earn-out of up to EUR 3.3 million from which liabilities of approximately EUR 0.1 million relating to the transferring employees will be deducted. The earn-out will depend on the number of Watermaster machines delivered and paid for in full over a four-year period. Whether additional consideration becomes payable, and its amount, remain uncertain.
Part of Aquamec's outstanding order book is excluded from the transaction. These deliveries and the related liabilities, including customer advance payments received, will remain with Aquamec. The timing and realisation of the cash flows associated with these deliveries are uncertain, and they have not been included in the transaction cash-flow estimate.
Financial effects
The Watermaster business will be consolidated into the Summa Defence Group's financial results up to the completion date of the transaction. The transaction is expected to have a one-off negative impact of approximately EUR 8.1 million on the Group's result, primarily due to an impairment of goodwill. The impairment is an accounting charge and has no cash-flow impact.
The estimated immediate positive cash-flow impact of the transaction on the Group is approximately EUR 1.8 million after payment arrangements and transaction costs. Potential cash flows from deliveries retained by Aquamec are not included in this estimate.
On 9 October 2026, the Company announced that the District Court of Helsinki had decided to commence corporate restructuring proceedings in respect of Summa Defence Plc and its subsidiary Summa Holding Oy. Management expects the sale of the Watermaster business and inventory to reduce the Group's future working capital requirements. The transaction forms part of the measures announced by the Company on 5 October and 9 October 2026 to safeguard its liquidity and business continuity. The transaction alone will not resolve the Company's financing situation, and the Company continues to assess financing alternatives and take measures to secure new financing during the corporate restructuring proceedings.
The assessment of alternatives continues in respect of the other subsidiaries and businesses included in the strategic review announced by the Company on 15 May 2026.
SUMMA DEFENCE PLC
Board of Directors