THEON expands global footprint by establishing Theon Belgium and investing in ANDRES

Core Viewpoint - Theon International Plc is expanding its operations by establishing a wholly owned subsidiary, Theon Belgium, to enhance its production capabilities and support its growing A.R.M.E.D. product line, aiming for significant revenue growth in the coming years [2][5][10]. Group 1: Establishment of Theon Belgium - Theon International Plc has formed a 100% owned subsidiary, Theon Belgium, to capitalize on the global traction of its A.R.M.E.D. product series [2]. - A new production facility is being established in Zaventem, Belgium, along with a liaison office in Brussels to support European Union and NATO programs [2][3]. - The facility will cover 420 square meters and is strategically located within the Ikaros Business Park, which is home to several high-tech companies [3]. Group 2: Operational Plans and Workforce - Theon Belgium has appointed a Belgian citizen as the Plant Manager, who will oversee the facility setup and recruit up to 12 employees in the initial phase [3]. - Production is expected to commence in the fourth quarter of 2025, with plans for future R&D integration as part of the company's long-term expansion strategy [3]. Group 3: Strategic Partnerships and Agreements - Theon Belgium has signed local cooperation agreements with major electro-optic manufacturers and local subcomponent producers to leverage Belgium's capabilities in thermal and digital technologies [4]. - This investment aims to create an export-oriented hub that will serve both local and global customer needs [4]. Group 4: Revenue Growth Strategy - The company plans to increase the proportion of A.R.M.E.D. products in its annual revenue from below 10% in 2025 to approximately 20% in 2026 [5]. - Theon aims for 50% of its revenues to come from products outside of Night Vision in the medium term, supported by organic growth and strategic acquisitions [5]. Group 5: Acquisition of Stake in Andres Industries - Theon has acquired a 10% strategic equity stake in Andres Industries AG for €1.1 million, with options to increase this stake to 24.99% within two years for a total consideration of €4.5 million [6]. - This acquisition is part of Theon's strategy to expand its presence in Germany and enhance its digital and thermal capabilities [6][8]. Group 6: Commitment to European Defense Integration - The establishment of Theon Belgium and the investment in Andres Industries reflect the company's commitment to the European Defense Industry Integration (EDII) [10]. - Theon aims to be a catalyst for EDII, aligning its strategic moves with the integration efforts pursued by European Union member states [10].