The story
A proposal in 1975 by a big Greek chemical company, Chropei of Piraeus, for the adoption of its rifles and submachine guns was rejected after testing proved that its weapons were not up to standards. Similarly, the Greek state did not support Pyrkal, which was producing the FN FAL rifle under license.
EBO was founded by the state in Aigio in 1976, after an agreement to initially produce under licence Heckler & Koch models adopted by the Greek Army, but with the intent to design arms of its own. During its foundation ceremony, a Greek pistol of the 1820s (used in the Greek Revolution) was placed on the foundation stone to represent the continuity of Greece's arms-making craft.
Since that time, the company has grown by acquisition. In 2004, it merged with Pyrkal, forming Hellenic Defence Systems, in an effort of the Greek state to better control and regulate this sector of the nation's defence industry. Its financial state has been shaky almost since its early steps.
From Wikipedia’s article on Hellenic Arms Industry, shared under CC BY-SA 4.0.3