Fjord Defence Group ASA - PartnerTech acquires Microprecision to expand precision manufacturing capacity for the defence industry
Oslo, 22 October 2026 Fjord Defence Group ASA ("Fjord Defence Group" or the "Company") today announces that its wholly-owned subsidiary, PartnerTech Karlskoga Aktiebolag ("PartnerTech"), has signed an agreement to acquire 100% of the shares in the Swedish precision manufacturing specialist Microprecision Aktiebolag ("Microprecision") (the "Acquisition"). The transaction expands the Group's high-precision metal component manufacturing capacity for the Nordic and European defence sector. Microprecision will add significant earnings capacity for PartnerTech and will be integrated as a strategic bolt-on acquisition.
Strategic highlights and rationale - The Acquisition adds immediate, turnkey high-precision machining capacity in a market where PartnerTech will continue to face sustained high demand from tier-1 defence OEMs - The Acquisition delivers a modern, high-quality machine park with an estimated value at multiple times the enterprise value (including potential full earn-out) in the Acquisition - Acquiring an operational facility with skilled staff represents a significantly faster and more capital-efficient route to growth than building new facilities from scratch - Microprecision's 2025 revenue was SEK 102 million and an EBITDA of 0. 2026 revenue is expected at approximately ~SEK 70 million and EBITDA slightly negative for 2026. LTM* (August 2026) revenue is SEK 97 million and EBITDA of SEK 4.8 million - The Microprecision facility operates with a machine park capable of supporting annual revenues of SEK 200 - 250 million within its existing footprint through expanded shift operations - Microprecision operates with a manufacturing permit from the Swedish Inspectorate of Strategic Products (ISP), along with ISO 9001, 14001, and 45001 certifications. This allows for immediate contract execution without additional qualification lead times - The business brings a highly loyal customer base where over 80% of production volume represents long-term, recurring business. Topline growth is expected to start accelerating in 2027 based on expected volume increases from existing and new defence customers - Microprecision is expected over time to scale toward full capacity utilization, with operating margins gradually approaching PartnerTech's established profitability levels - Operating out of a purpose-built 4,400 sqm facility, Microprecision employs 44 skilled specialists with an average tenure of 11 years. The facilities allow for additional production capacity to be added over time - Microprecision's advanced CNC machining capabilities provide turnkey capacity for manufacturing specialized, high-precision ammunition components, including medium- to large-calibre shell casings, precision fuses, and projectile assemblies *LTM = Last Twelve Months
Executive comments Jon Asbjørn Bø, CEO of Fjord Defence Group, comments: "This transaction delivers on our strategy to grow through attractive bolt-on acquisitions for our subsidiaries, helping PartnerTech expand its deliverables to existing and new defence customers. It represents a capital-efficient route to growth, securing both the right people and an advanced machine park at a fraction of its replacement cost. Microprecision serves as a key building block toward reaching our Group target of NOK 400-500 million in EBITDA by 2029." Magnus Blomgren, CEO of PartnerTech, comments: "We have known Microprecision for a long time and know that they deliver high quality to their customers. The company currently operates sub-scale, but under PartnerTech's leadership, client base and order backlog, we expect topline growth to start accelerating significantly in 2027, with solid profitability achieved within a relatively short period. PartnerTech's management team has executed similar growth journeys in the past and possesses the complete operational toolbox to scale Microprecision into a successful and profitable enterprise."
Transaction details and financing - The agreed Enterprise Value for Microprecision is SEK 23 million, including SEK 17 million in debt - The total purchase price in the Acquisition comprises (i) a cash consideration of SEK 1 million and (ii) consideration shares in the Company worth SEK 2 million upon closing. The consideration shares will be transferred from the Company's treasury shares at a share price of NOK 16.50 per share. In addition, the Acquisition includes a performance-based earn-out of up to SEK 3 million, subject to Microprecision achieving certain financial targets in 2027 and 2028 - The transaction will be fully financed through available cash reserves, treasury shares and existing credit facilities - 100% of the shares are acquired from founder Rade Paunovic - The Acquisition is subject to customary closing conditions, including regulatory approvals / ISP approval transfer / manufacturing permit and FDI clearance, and is expected to close during Q4 2026
About PartnerTech AB PartnerTech AB is a leading Nordic contract manufacturer specializing in high-precision machining and advanced mechanical solutions. PartnerTech has experienced strong growth, expanding its revenue from SEK 348 million in 2022 to approximately SEK 613 million in 2025. Approximately 92% of PartnerTech's production volume is dedicated to the defence sector, with tier-1 defence OEMs such as SAAB Dynamics and BAE Systems as key customers.
About Microprecision AB Founded in 1975 and located in Brunna (Kungsängen), Sweden, Microprecision is a specialized supplier of complex, high-precision components. The company operates a full-value-chain capability, including CNC turning, milling, grinding, surface treatment, hardening, and assembly, utilizing a high-quality machine park of 44 modern CNC units.
For more information, please contact: Jon Asbjørn Bø, CEO jab@fjorddefence.com +47 930 86 932
About Fjord Defence Group ASA Fjord Defence Group ASA ("DFENS") is a Norwegian "compounder" listed on Euronext Oslo Børs seeking to acquire and develop fast-growing, profitable, and well-run companies in the defence industry. The company has a buy & build strategy, with focus on acquiring established, profitable businesses within the defence, security and related segments. More information on www.fjorddefencegroup.com.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.