Greek night vision and thermal imaging specialist Theon International announced on 4 August 2025 the acquisition of 100% of Kappa Optronics, a German specialist in aviation and land system optronics, for an enterprise value of EUR 75 million, at an accretive multiple.
The transaction, which will be financed through a mix of debt and initial public offering (IPO) proceeds, remains subject to customary regulatory approvals.
Founded in 1978 and headquartered in Göttingen, Germany, Kappa operates an research-and-development (R&D)-driven, asset-light model focused on design, assembly, and quality assurance, also housing management and administrative functions, which Theon asserts is closely aligned with its own business model.
“With a team of 60 highly skilled engineers and a strong technological edge in platform products, [Kappa] is well-positioned to contribute to Theon’s innovation pipeline,” the company stated.
Together with its subsidiaries in the United States and Spain, Kappa employs approximately 200 people and operates out of approximately 3,000 m2 of operational space.
Kappa is on track to exceed EUR 37 million in revenue in FY 2025, with an EBITDA of approximately EUR 8 million, primarily driven by defence mobility and autonomous machines. The acquisition is expected to support strong top-line growth and sustained margins. Importantly, projected 2026 EBITDA does not yet reflect the impact of Theon’s business development initiatives, which will begin immediately post-acquisition.
Theon noted that Kappa’s well-invested infrastructure requires minimal capital expenditure that is not beyond what is already included in Theon’s guidance. The current Kappa management team will remain in place and is incentivised through a performance-based scheme to drive future growth.
Christian Hadjiminas, founder and CEO of Theon, was quoted as saying, “We are delighted to welcome Kappa Optronics to the Theon Group. This investment combines all our targeted strategic priorities: One: strengthening our footprint in Germany, following our recent investments in Harder Digital and Andres Industries and building on our existing Theon Germany Wetzlar plant under a JV with Hensoldt. Additionally, geographically, it provides us – after the establishment of Theon Belgium – an initial entry point into Spain: another EU/NATO country where we intend to leverage this presence for the eventual production of Theon’s main products.
“Two: instantly expanding our electro-optics product offering, particularly for land and aerial platforms – key focus areas for Theon.
“Three: achieving immediate accretiveness, with strong potential to scale sales rapidly through Theon’s business development capabilities – well within 2026.
“And Four: last but not least, significantly enhancing and deepening our R&D capabilities, complementing our Athens-based team of around 80 engineers.”
Sebastian Vreemann, CEO of Kappa, added, “Joining the Theon Group marks an exciting new chapter for Kappa. This partnership strengthens our growth trajectory, expands our reach in key defence and aerospace markets, and enhances our R&D capabilities through close collaboration with Theon’s engineering teams. We see strong cultural alignment and look forward to unlocking new opportunities together.”
