Safran acquired Collins Aerospace high-technology actuation and flight control activities, which are mission critical for commercial & military aircraft and helicopters. This acquisition offers unique opportunity for Safran to become a global leader in critical flight control (ATA27) and actuation functions.
According to Safran the acquisition is expected to generate sales of approximately $1.5 billion and an EBITDA of $130 million in 2024E.
As part of the contemplated acquisition, long-term supply agreements covering ~25% of sales would be secured between Safran and Collins at attractive terms. The transaction is expected to be fully financed with available cash, with a limited impact on the Group’s net leverage and a reiterated commitment to the robust Group’s investment grade rating.
Olivier Andriès, chief executive officer of Safran, commented: "The contemplated transaction represents a unique opportunity to develop our position in mission critical actuation and flight control functions. 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 expected to generate approximately $50 million of annual pre-tax run-rate cost synergies, which would be progressively implemented from 2025 to 2028. The acquisition will be completed by H2 of 2024.
Closing is expected to take place in H2 of 2024.