Safran to acquire Collins Aerospace’s actuation and flight control business
Safran is to acquire Collins Aerospace’s high-technology actuation and flight control activities, which are mission critical for commercial & military aircraft and helicopters. The business has around 3,700 employees across eight facilities in Europe (France, UK and Italy) and in Asia. It is expected to generate sales of approximately $1.5 billion and an EBITDA of $130 million in 2024.
Its UK sites are based in Wolverhampton and Banbury.
Collins Aerospace is currently owned by Raytheon Technologies, which rebranded to RTX recently.
READ MORE: Avon Protection lands $6.7 million US defence order
Olivier Andriès, Chief Executive Officer of Safran, said: "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. Such synergies would notably come from economies of scale in procurement, R&D complementarity, internalization of sourcing and production flows. In addition, commercial synergies would be obtained through integrated offerings and a diversification of customers and geographic mix. Commercial synergies would continue post 2028 with run-rate achieved on next-generation aircraft by the middle of the next decade.