Saab divests space subsidiary to Swiss peer

Swedish defence and aerospace group Saab AB said on Tuesday it will sell its Saab Space subsidiary to Switzerland-based RUAG Holding for 335 million kronor ($56 million).

“Saab Space is well managed and profitable, but we have not been able to reach sufficient synergies with other operations within Saab and as a result not the desired possibilities of growth and profit,” said Saab CEO Åke Svensson in a statement.

The company also cited the consolidation in the European space industry as another factor in the decision to divest Saab Space.

The deal allows for Saab to have an additional consideration related to the long-term performance of Saab Space under its new owners.

It said the sale of the space division, which requires approval of competition authorities, would generate about 100 million kronor in capital gains in 2008.