Safran SA agreed to acquire Actuation and Flight Control Business of Collins Aerospace.
July 20, 2023
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Safran SA (ENXTPA:SAF) agreed to acquire Actuation and Flight Control Business of Collins Aerospace on July 20, 2023. The cash offer is based on a $1.8 billion enterprise value. The transaction is expected to be fully financed with available cash. The transaction is subject to the information and consultation procedure with the relevant employee representative bodies of Collins and Safran, as well as the customary regulatory approvals and other customary closing conditions. On November 16, 2023, the Italian government notified RTX that it has denied Safran?s proposed acquisition of the portion of the Collins business conducted by Microtecnica S.r.l. RTX and Safran have both appealed that decision to the relevant regional court in Italy, and continue to evaluate additional options in response to the Italian government?s decision. As of June 6, 2024, the Italian government has cleared the acquisition of actuation and flight control business from Collins Aeros. The approval was granted after the buyer made a number of commitments, alleviating Italy's initial concerns related to the country's national interest, Safran said. It added that the deal has also been unconditionally cleared by the UK government. Closing is expected to take place in the course of H2 2024.
Michael DeFranco, Brook Mestre, Stéphane Davin, Nancy Hamzo, Kathryn Strong, Saveria Laforce, Lane Morgan, Kai Kramer, Guillaume Le Camus, Charles Baudoin, Elizabeth Ebersole, Kimberly Franko, Christopher Guldberg, Olivier Vasset, Adam Aft, Jessica Greenwald, John Fedele, Creighton Macy, Samantha Mobley, John Watson and Sarah Winston of Baker McKenzie acted as legal advisors to Safran. Evercore Inc. (NYSE:EVR) acted as financial advisor to Safran SA. Alexandra Ferrara, Damian Didden, Eiko Stange, Elina Tetelbaum, Ellen Choe, Emily Johnson, Erica Bonnett, Farrah Ricketts, Joshua Cammaker, Lucas Wozny, Monica Smith and Nicole Sharer, Rushi Patel, Selwyn Goldberg, Stephanie Marshak and Tallulah Tepper of Wachtell, Lipton, Rosen & Katz acted as legal advisor to RTX corporation.
Safran is a high technology international group, a leading equipment provider in the Aerospace and Defense markets. The group specializes in the design, manufacturing, and marketing of equipment and systems of high technology mechanical and electronic equipment. Net sales break down by product family as follows:
- aeronautic and space propulsion systems (51.2%): helicopter motors (No. 1 worldwide), civil and military airplanes motors, systems for space lancers and missiles, turboreactors for drone targets, etc.;
- aircraft equipment, defense systems and aerosystems (38%): airplane engine pods, landing gear, braking systems, electric wiring systems, etc. Safran also offers on board aircraft systems and equipment (primarily evacuation slides, emergency arresting systems, protective parachutes and oxygen systems, electrical power management systems, control systems, water and waste management systems and connectivity systems) and defense and security systems (helicopter flight controls, fingerprint-based biometric identification systems (No. 1 worldwide), inertial systems, optronic systems, tactical drone systems, etc.);
- aircraft interiors (10.7%): cabin interiors and seats;
- other (0.1%).
Net sales are distributed geographically as follows: France (19.4%), Europe (24%), the Americas (34.8%), Asia and Oceania (13.2%), Africa and the Middle East (8.6%).