Further Consolidation of the European Land Weapons Business: KNDS Acquires Texelis

01/31/2025

By Pierre Tran

Paris – The French unit of KNDS and Texelis have signed an outline agreement on the acquisition of the builder of powertrains for armored vehicles by the manufacturer of land weapons, KNDS said in a Jan. 29 statement.

“On January 29, 2025, KNDS and the shareholders of Texelis signed a Memorandum of Understanding (MOU) concerning the proposed acquisition by KNDS France of Texelis’ Defense business,” KNDS said in the statement.

“Under this agreement, the two parties announce that they are entering into exclusive negotiations with a view to carrying out this transaction, which will require the separation of Texelis into two companies – Texelis Défense and Texelis Transport,” the company said.
KNDS France and KNDS Deutschland are the partners of the Franco-German KNDS group which builds heavy tanks and artillery. The former previously traded as Nexter, while the latter was known as Krauss-Maffei Wegmann.

Texelis is joint prime contractor with KNDS France on the Serval, a light version of an armored personnel carrier, part of the French army’s Scorpion modernization program.

The acquisition deal was expected to be completed by the end of this year, with the timing set by formally splitting the Texelis business into military and civil units, and meeting regulatory requirements, a source close to the deal said.

No details were given on the price of the planned deal. Texelis reported 2023 sales of some €110 million ($115 million), and expected to post 2024 sales of €120 million.

The agreed deal marks a further step in the consolidation of European land weapons, following the acquisition last year of Arquus, a French builder of light armored vehicles, by a Belgian company, John Cockerill.

“John Cockerill announces today the conclusion of the acquisition process of Arquus, the main French supplier of military vehicles, which began last January with the Volvo Group,” the Belgian supplier of gun turrets said in a July 2, 2024 statement.

France and Belgium backed that cross-border acquisition, with Paris and Brussels each taking 10 pct of the capital of John Cockerill Defense, the Belgian company said.
Volvo, a Swedish truck company, sold off Arquus, after setting a reported price tag of an initial €300 million and a final price pegged to performance over 18-24 months.

Texelis supplies powertrains, or mobility packages, including a Cummins engine, Allison gearbox, Michelin tires, suspension, and axles for the Serval armored vehicle. That mobility package is branded as Celeris for export markets.

Complementarity Acquired

The acquisition of Texelis was delivering a “complementarity” for the French KNDS unit, bringing inhouse the mobility package for armored vehicles, the source said.

Texelis was bringing “a real know-how,”  the source said, including hybrid, or diesel-electric, propulsion. This technology could be applied to the fleet of KNDS armored vehicles.
An analyst said the planned acquisition would bring the Serval program fully inhouse to KNDS France, and bring back a “crucial” industrial capability ceded some 30 years ago.

KNDS France, previously trading as Giat, built powertrains for the AMX10 RC reconnaissance and combat vehicle, and Vextra, an armored vehicle which failed to find a buyer. Giat, renamed as Nexter, went on to rely on suppliers such as Texelis, Tatra, and Mercedes for powertrains.

The acquisition was effectively a “vertical integration,” the analyst said. Arquus worked with KNDS as supplier and designer on the Griffon troop carrier and Jaguar combat and reconnaissance vehicle, while Texelis supplied Arquus as a subcontractor.

Once KNDS becomes its parent company, Texelis will be both a supplier, through Arquus, and subsidiary to KNDS.

Arquus receives some 40 pct of value on the Griffon, and five to 10 pct on the Jaguar. The company supplies the remote-control machine gun on the former, and driveline on the latter.

Texelis had previously been a subcontractor, but won a joint prime contractorship on the Serval with KNDS France.

Texelis Sees Security

For Texelis, there was a view the acquisition secured the Serval program and brought economic stability, a second source close to the deal said. The acquisition was seen as delivering a quality team, products which worked, and high profitability.

The present management would stay in place, the second source said.

For KNDS France, the acquisition could be seen as broadening business beyond the project for a main ground combat system (MGCS), the second source said. One possibility would be KNDS setting up a KNDS mobility unit, working on mobility packages for the group as well as the clients of Texelis.

The acquisition price was undisclosed, the analyst said, but when Volvo put Arquus up for sale in 2016, the main subsidiary, Renault Trucks Defense (RTD) had annual sales of some €400 million, and Nexter/KNDS France had bid €420 million.

Volvo saw that offer was too low and took RTD off the market in 2017. The truck maker and its then bank adviser Rothschild had expected bids of €500 million to €700 million for its Volvo governmental sales division.

KNDS France and Texelis said they welcomed the planned acquisition.

“This structuring project will enable us to strengthen our growth and increase our skills in the mobility field, with a high-performance French company that we know well and that is already our partner in the temporary business venture Serval,” Nicolas Chamussy, chief executive of KNDS France, said in the company statement.

Charles-Antoine de Barbuat, chairman of Texelis, said, “The future integration of Texelis’ Defense business into the KNDS group would open up numerous growth prospects, beyond the initial success of the collaboration.

“In addition, the Transport business has all the assets needed to pursue its development independently.”

The transport business includes axles and drivelines for rail transport, subways, and trams.
Texelis was a management buy-out in 2019, backed by institutional investors including the state-backed BPI France, .

Arquus posted 2023 net profit of €3.97 million on sales of €581 million, after 2022 net profit of €8.14 million on sales of €559.21 million. That gave a net profit margin of 0.68 pct, down from 1.46 pct.

A Signing for A New Tank Company

KNDS Deutschland, KNDS France, Rheinmetall Landsysteme and Thales signed the articles of association for MGCS Project Company GmbH, to be based in Cologne, Germany, the companies said in a Jan. 23 joint statement.

The MGCS program will replace the Leopard 2 and Leclerc heavy tanks with a “cross-platform combat system” in 2040, the companies said.

That replacement by the MGCS would be in 2035, the French armed forces ministry said in a Jan. 24 statement.

The French and German defense ministers, Sébastien Lecornu and Boris Pistorius, attended the signing, which the companies said was an “essential step” in setting up the MGCS project company.

Exercise Ramstein Flag 24

Exercise Ramstein Flag 24, organised by NATO’s Allied Air Command and the Hellenic Air Force, held in Greece. This exercise ran  from 30 September to 11 October 2024 and marks the first iteration of the ‘Flag’ series, which aims to demonstrate NATO’s determination and capacity to implement and execute the ‘Deter and Defend’ concept across NATO member countries in the Euro-Atlantic region.

The primary objective of Ramstein Flag 24 is to strengthen cooperation, interoperability and integration among Allied forces. It serves as a powerful demonstration of NATO’s resolve, commitment and ability to deter potential adversaries while defending the Alliance through multi-domain operations.

Along with NATO AWACS aircraft and NATO RQ-4D Intelligence, Surveillance and Reconnaissance drones, over 130 fighter and enabler aircraft from Canada, France, Greece, Hungary, Italy, Poland, Portugal, Romania, Spain, Sweden, the United Kingdom and the United States are participating in the exercise.

The exercise integrates air, land, maritime, space and cyber domains under NATO command and control. It provides a unique opportunity to practise Counter Anti-Access/Area Denial (C-A2/AD) and Integrated Air and Missile Defence (IAMD) tactics, techniques and procedures in a realistic operational environment.

GREECE

10.02.2024

Natochannel

MQ-9 Training

01/29/2025

U.S. Marines assigned to Marine Aviation Weapons and Tactics Squadron One, conduct an MQ-9 training flight as part of Weapons and Tactics Instructor course 1-25 at Laguna Army Airfield, Arizona, Oct. 5, 2024. WTI course is a seven-week training event hosted by MAWTS-1 which emphasizes operational integration of the six functions of Marine aviation in support of the Marine Air Ground Task Force, Joint and Coalition Forces.

10.05.2024

Video by Cpl. Nicholas Johnson 

Marine Aviation Weapons and Tactics Squadron-1

Logistical Support for Distributed Maritime Effects

01/28/2025

By Robbin Laird

I am publishing a book later this year forcused on the paradigm shift in maritime operations. For this paradigm shift, the U.S. must get beyond a primary focus on the thirty-year shipbuilding plan.

While the U.S. Navy and its allies focus on distributed capital ship operations, there is a growing significance of delivering distributed maritime effects, which may or may not need the capital ship.

In either case, DMO for capital ships or DMO in terms of distributed maritime effects, logistical support is crucial, but is not the same in each case.

The first relies heavily on the Maritime Selaift Command whereas the second relies on airpower and innovations in new ways in how seaborne support can be provided. And in the latter case how airpower and maritime autonomous systems can be combined to provide both for the insertion and support of the forces providing for distributed maritime effects.

A recent piece by Brian Kerg on the Center for International Maritime Security website provided a ground forces perspective on delivering distributed maritime effects to provide means to provide for the significant shortfall in U.S. maritime combat capability.

“The U.S. cannot afford to wait decades to conventionally offset the military advantage of China at sea and protect its interests. Instead, the U.S. can quickly regain advantage asymmetrically by putting the right fit of combat credible military power at key maritime terrain now.

“While it may take the U.S. years to build a single ship, it can raise, man, and equip ground forces optimized for operations on key maritime terrain at the speed of relevance, raising minimally required forces in under a year.

“Such forces, once raised, can achieve asymmetric and decisive strategic deterrent effects through permanent deployment to decisive points within the territory of U.S. allies such as Japan and the Philippines, and partners such as Taiwan.”

The photo accompanying the article highlights the importance of airpower in inserting the force. But how to logistically sustain the force or move the force rapidly?

In addition to the Osprey, the Marines have access to a new combat capability, namely the CH-53K which can deliver significant supply loads including munitions at the point of need.

And these two aircraft can be assisted by the coming of maritime autonomous systems as well in providing a combined arms approach to logistical support, including movement of the insertion force to different locations supporting maritime operations.

In short, it is not just abouit capital ships.

With the need to increase maritime combat rapidly, airpower and introducing maritime autonomous systems are key capabilities which rely on different supply chains and are built more rapidly than capital ships.

There is a clear ned for a comprehensive strategy for enhanced maritime operational capability which combines consideration for new capital ships for DMO as well as new ways to insert and support distributed maritime effects.

See also, the following:

The Launch Point: Why a Combined Arms Operation with Maritime Autonomous Systems?

Optimizing for the Contested Logistics Mission: The Role of Maritime Autonomous Systems

U.S. Navy Logistical Support and Contested Logistics

2nd MAW CG Flight

01/27/2025

U.S. Marines with Marine All-Weather Fighter Attack Squadron (VMFA (AW)) 224 prepare an F/A-18C Hornet for flight that is piloted by Maj. Gen. William Swan, the commanding general of 2nd Marine Aircraft Wing, at Marine Corps Air Station Beaufort, South Carolina, Oct. 1, 2024.

MARINE CORPS AIR STATION BEAUFORT, SOUTH CAROLINA

10.01.2024

Video by Cpl. Rowdy Vanskike

2nd Marine Aircraft Wing    

An Estonian Perspective on Building European Defence Capability

01/26/2025

By Pierre Tran

Paris – The Estonian ambassador, Lembit Uibo, pointed up Jan 21 the need for compromise when ordering weapons from European Union nations, the U.S. and other allies, with the key factors being price, quality and delivery time.

There was need for “compromise,” the senior diplomat told the Association des Journalistes de Défense (AJD), a press club, when asked whether the E.U.’s planned multi-billion euro fund for common weapons procurement should be spent on European arms rather than those from the U.S. and other allied nations.

Tallinn was “fully on board” with France, he said, with Paris seeking to spend French taxpayers’ money on weapons built by the European defense industry. But, he added, the reality was Estonia could not get all the military kit it needed “in the short term” in Europe, and could find the weapons built by allies such as the U.S., U.K., Turkey, and South Korea.

There was a policy preference for European-built weapons, but there were three key procurement criteria, namely price, quality, and delivery date, he said.

The diplomat referred to E.U. studies which pointed up an “enormous” annual shortfall of €200 billion ($210 billion) in European military spending, and said Tallinn strongly supported the creation of an E.U. fund of €500 billion for common arms procurement among the 27 member states.

The launch of E.U.-backed €100 billion eurobonds would feature in the proposed funding of  procurement, which Tallinn backed along with Paris, he said. That E.U. arms fund was expected to feature in an E.U. defense white paper due in February.

Poland, which holds the rotating presidency of the E.U. council, seeks to forge consensus on the arms funding package by the middle of the year.

Tallinn has long seen Moscow as “potential aggressor” and “a threat to security,” the ambassador said. Estonia planned to spend 3.4 percent of gross domestic product on the military budget in 2025, after previously spending more than two percent.

The perception of Russian naval threat has risen sharply, with the U.K. defense secretary, John Healey, telling Jan. 21 parliament the Royal Navy had been tracking closely what he said was a Russian “spy ship,” the Yantar, as it sailed through British waters the day before. In November, a British attack submarine, reported to be the Astute, unusually surfaced next to the Yantar, to show the ship was being closely tracked, the defense secretary said.

Finland seized Dec. 26 a tanker, the Eagle S, registered in the Cook Islands and carrying Russian oil. The Finnish authorities suspected that ship had deliberately damaged the day before an undersea power cable between Finland and Estonia, and four telecom lines, by dragging its anchor on the Baltic seabed.

Estonia joined the E.U. in 2004, after breaking away from the Soviet Union in 1990 along with partner Baltic nations Latvia and Lithuania. The three Baltic nations are also Nato members, after some 50 years of Russian occupation.

Building Fast

Close ties between Estonia and France would be seen with the French-built Caesar artillery appearing at Estonia’s Feb. 24 independence day parade, with the French armed forces minister, Sébastien Lecournu, due to attend the anniversary parade, the ambassador said.
“He should be there,” lieutenant colonel Alo Valdna, the Estonian defense attaché, said.

There are also close military links between Estonia and the U.K., the ambassador said.

The delivery time for the Caesar was “very short,” he said, referring to the 155 mm, 52 caliber artillery which Estonia had ordered.

Arms builder KNDS France speeded up production of the Caesar after the French authorities called for faster delivery of weapons in response to the 2022 Russian invasion of Ukraine.

Estonia, along with Croatia and France, signed a framework agreement last June for a pooled order for the artillery, with each partner nation ordering 12 units. The order was 15 percent funded by the E.U., through the European Defense Industry Reinforcement through Common Procurement Act (EDIRPA).

Armenia also ordered the Caesar, the French defense minister said on a social platform last June, with the AFP news agency reporting Yerevan had ordered 36 of the truck-mounted gun.

Estonia was also buying a fresh stock of the French-built Mistral short-range missile, and the German-built IRIS-T medium-range missile, the diplomat said. Tallinn had yet to decide on a  long-range missile.

The Estonian Centre for Defence Investments said Jan. 21 the procurement office had received six U.S.-built M142 High Mobility Artillery Rocket System (Himars), as part of its “strategic partnership with the United States.”

The multiple rocket launchers were due to be shipped to Estonia in the next few months. Tallinn placed the $200 million order two years ago.

In Europe, investment could be made to plug capability gaps in Nato, such as drones, long-range strike, air defense, and ammunition, the ambassador said.

There was need to do more in Europe, and it was urgent, he said, as there was a full scale war in Europe, and the U.S. appeared to be set to turn to Asia.

Meanwhile, oil was the main source of revenue for Moscow, the diplomat said, and the package of energy sanctions announced by the outgoing Joe Biden administration just days before the Jan. 20 inauguration was “better late than never.”

A Western price cap on the energy sector would be a good way of tightening financial screws on Russia, which relied on shipping oil to China and India, he said. Russia drew heavily on a “shadow fleet” of tankers registered offshore.

Another form of financial pressure would be if Western allies seized the €260 billion of Russian assets frozen around the world, as Ukraine needed military aid, the diplomat said.
Anti-Moscow activist Bill Browder, speaking at the World Economic Forum at Davos, called for the Russian assets to be cashed in and spent, to support Ukraine, U.K. daily The Guardian reported Jan. 22. Ukraine’s need for financial support would be all the greater if the new U.S. administration cut off military aid to Kyiv, the report said.

There has previously been talk of seizing the interest due on the frozen Russian assets, but the financial threat may have risen.

The Estonian independence day will also display the Mistral surface-to-air missile and South Korean-built K9 tracked artillery, with the British army unit, the pipes and drums, taking part.  The parade marks the 105th anniversary of the Estonia parliamentary republic.

Nato Patrol in the Baltic Sea

There will be a Nato naval mission, dubbed Baltic Sentry, sailing in the Baltic Sea, Lt Col Valdna, said. Estonia and Finland were the key partners, and Germany and the Netherlands have offered ships to patrol waters against ships controlled by Moscow.

The Nato Baltic Sea allies held a Jan. 14 summit due to rising concerns over ships suspected of cutting underwater cable and security infrastructure in those critical waters. The alliance announced the Baltic Sentry mission will include frigates, maritime patrol aircraft, and a small fleet of naval drones.

The French forces will deploy the Croix du Sud, a tripartite countermine ship attached to the Nato TG 441.03 mine warfare unit, part of the standing NATO mine countermeasures group one (SNMCMG1), the French joint chiefs of staff said in response to an enquiry. France will also fly an Atlantique 2 (ATL2) maritime patrol aircraft in that allied Baltic mission.

The timing of deployment was withheld for reasons of operational security, the office said.
Baltic Sentry was a Nato naval surveillance operation intended to deter all threats to underwater and strategic infrastructure, the office said.

Macron Calls for Buy European

“France leads the ‘buy European’ camp, while Sweden and the Netherlands want to open up more to non-E.U. allies,” said a research note, Quick march! Ten steps for a European defence surge, from European Policy Centre, a Brussels-based think tank.

Macron has long argued for a European-first approach in ordering arms, and the arrival of a second term for Trump appeared to have raised the stakes.

The French commander in chief called Jan. 20 in his new year’s speech to the services for a “European preference” in arms procurement, while acknowledging Europe could not always be the champion. The risk lay in being marginalized in all the competitions.

Asked about the new U.S. administration, the Estonian ambassador said, “Estonia is a very, very transatlantic country” in defense and security terms.

“The United States is still the only force capable of deterring Russia,” he said.

The Estonian aim was always to find common ground and hold constructive dialog, reflecting a geopolitical need and a history in defense and security with the U.S.

The Tallinn approach was “let’s go with it day-by-day, let’s see what it brings, let’s not panic, let’s be constructive,” he said.

That approach was not just for Estonia, but also for the European Union, as the U.S. was the biggest market for the E.U., he said.

The E.U. shipped annual exports to the U.S. worth more than €500 billion, while the U.S. sold goods worth  €300 billion-€350 billion to the E.U., he said. That marked the “extremely important interaction” between the United States and the E. U., he said, adding he hoped this would be more clearly seen as time went by with the new U.S. administration, President Donald Trump and his advisers.

“We hope that this transatlantic tie will stay strong,” he said.

Trump said Jan. 22 Washington would impose trade tariffs on E.U. exports to the U.S., after media reports pointed up the absence of anti-E.U. measures in his inauguration speech in the Rotunda, just the day before.

When asked which European voice should Trump listen to, the ambassador said Emmanuel Macron, adding the French president had called for a “renaissance” of European capability.

Kaja Kallas, the E.U. high representative for foreign affairs and security policy, was the other European official Trump should listen to, the Estonian diplomat said.

“I also hope that the new high representative of the European Union, Kaja Kallas, will be one of the voices that Mr. Trump will be listening to,” he said.

Kallas said Jan. 22 Russia posed an “existential threat” to Europe, which needed to boost defense spending, Reuters reported. Kallas, an ex-lawyer and former adviser at Estonia’s Vanemuine theatre, was Estonian prime minister before taking up the E.U. post in 2024.
Kallas and the European commissioner for defense and space, Andrius Kubilius of Lithuania, are drafting the E.U. white paper on defense.

Italian prime minister Giorgia Meloni was the only European head of government at the U.S. inauguration, and she had seen Trump at his Mar-a-Lago private residence a fortnight before he was sworn in as the 47th president.

The ambassador received the journalists at the embassy, housed in a classic Haussmanian building, distinctively redesigned inside. The embassy threw its doors open to the public last year in a cultural open day as part of the Paris Olympic and Paralympic Games.

Estonia’s resistance to Russia appears in the John le Carré spy novel, Smiley’s People, where Vladimir, an Estonian general, played a key role in delivering a Russian spy chief, the Sandman, to the British intelligence service.

Credit graphic: ID 240394650 | Estonian Map © Aleksis15 | Dreamstime.com

Exercise Formosa

01/24/2025

U.S. Marines with Alpha Company, 1st Battalion, 24th Marine Regiment and Marines with 3rd Air Naval Gunfire Liaison Company are hosted by the Brazilian Marine Corps in support of Brazilian Marines Corps infantry training Exercise Formosa Sept. 6-21, 2024, in Formosa, Brazil.

U.S. Marine Corps participation in Exercise Formosa, a key event in the military cooperation between the two nations.

FORMOSA, GOIáS, BRAZIL

09.21.2024

Video by Cpl. Aaron TorresLemus

U.S. Marine Corps Forces, South