September 6, 2022: Safran has entered into negotiations with Thales to acquire its aeronautical electrical systems business. This acquisition will position Safran as a prominent equipment supplier across the entire electrical chain.
Thrilled with on-going negotiations, Stéphane Cueille, President of Safran Electrical & Power said: "We are delighted with the prospect of joining forces with the "electrical" teams of Thales, which would enable us to master the electrical chain even better, in particular thanks to the contribution of their skills as a leader in electrical conversion. The complementarity of our know-how would allow us to bring ever more relevant and effective solutions to the market."
For Thales, this deal is a part of its strategy to refocus on core businesses of aerospace, defense and security, identity, and digital security. Thales's aeronautical electrical systems business employs nearly 600 people and generated revenue of €124 million in 2021.
Yannick Assouad, Deputy General Manager, Avionics at Thales said: “This project would enable our aeronautical electrical systems teams to benefit from an environment conducive to their development and provide Safran Electrical & Power with their expertise in electrical conversion, generation, and motors. This proposed acquisition would thus guarantee these activities solid prospects in a market that is showing dynamic growth, and would allow Thales, more than ever, to focus on developing the global excellence of our critical avionics activities.”
The acquisition will include Thales Avionics Electrical Systems and Thales Avionics Electrical Motors, located on the sites of Chatou, Meru, and Conflans-S Honorine in France along with the support, maintenance, and production activities for aeronautical electrical equipment based in Orlando (United States) and Singapore.
The transaction is expected to be completed in 2023. The proposed transaction is subject to the information consultation procedure of the relevant employee representative bodies of Thales and Safran, as well as to the usual regulatory authorizations.