Safran has announced the contemplated acquisition of Collins Aerospace’s actuation and flight control activities in a $1.8 billion cash deal.
The acquisition, representing the culmination of a deal first reported in early June, was formally announced July 21.
Collins Aerospace’s actuation and flight control activities, which develop mission-critical components for commercial and military aircraft and helicopters, has around 3,700 employees across eight facilities in Europe and Asia, and also benefits from maintenance, repair and overhaul (MRO) and engineering capabilities.
The unit is expected to generate sales of approximately $1.5 billion and an EBITDA of $130 million in the first quarter of 2024 for Paris, France-based Safran, a high-technology firm in the aviation, defense and space markets.
Safran leaders say the acquisition presents an opportunity for the company to become a global leader in critical flight control and actuation functions.
“The contemplated transaction represents a unique opportunity to develop our position in mission critical actuation and flight control functions,” Safran Chief Executive Officer Olivier Andriès said. “Our highly complementary product offerings would create a global leader in these segments with around $1.8 billion of sales. The transaction would enable us to deliver a comprehensive offering to our clients and position us extremely well for next-generation platforms as the segments move toward increased electrification. The business is a perfect fit with both our product portfolio and our DNA with leading technologies, recurring aftermarket sales, and profitable growth.”
The transaction is subject to consultation with the relevant employee representative bodies of both companies, as well as customary regulatory approvals and closing conditions.
The deal is expected to close in the second quarter of 2024.
Reports first surfaced in January that Raytheon, the corporate owner of Collins Aerospace in Cedar Rapids, was exploring the possible sale of its actuation business.
Raytheon merged with United Technologies, the former parent of the company then known as Rockwell Collins, in April 2020, forming one of the world’s largest aerospace and defense companies in a $135 billion deal. As a result of that deal, Raytheon became the parent company of Collins Aerospace, including its operations in Cedar Rapids.
