Safran will acquire the flight controls and actuation business of Collins Aerospace. The latter, part of RTX, is one of the world’s leading suppliers of actuation and flight control systems for commercial and military aircraft and helicopters. This acquisition may thus see the birth of a world player in the field of activity concerned.
Safran to acquire the flight controls and actuation businesses of Collins Aerospace
Safran announces plans to acquire Collins Aerospace’s flight control and actuation businesses, high-tech and critical products for commercial and military aircraft and helicopters. This activity employs approximately 3,700 people spread over eight sites in Europe (in France, the United Kingdom and Italy) and in Asia, with resources in engineering and MRO (maintenance and repair). It should generate a turnover of approximately $1.5 billion.
Towards the birth of a major player
“The proposed transaction represents a unique opportunity to develop our position in critical actuation and flight control functions. Our highly complementary products would create a world leader in these market segments, generating sales of approximately $1.8 billion. This operation would allow us to offer a complete offer to our customers and would place us in an excellent position on the next generation of platforms in a context of increasing electrification of functions. This activity is perfectly consistent with our product portfolio and our DNA: advanced technologies, recurring service activities and profitable growth. »
A full range of skills and products
Collins’ actuation and flight controls business would provide Safran with a full range of skills and products, making the Group a leading player with an extensive portfolio of actuation and flight controls products. This acquisition will also allow significant potential for synergies between the various market segments (commercial and military aircraft, helicopters) with existing programs. The purchase of the Collins Aerospace branch will also bring complementary skills in hydraulic and electromechanical actuation. Collins’ leading skills in hydraulic and mechanical actuation would combine with Safran’s know-how in electrical actuation, as well as in electronics, and thus give the Group an advantage on future aeronautical programs.
Service activities with attractive potential
The French industrialist also sees an interesting potential for recurring turnover in service activities. About 40% of sales come from services activities, which generate particularly profitable revenues, and would thus strengthen the share of services in Safran’s activities. Finally, the acquisition will enable significant value creation thanks to the potential for short- and medium-term cost synergies – Clearly identified sources of cost synergies, associated with possible additional commercial synergies. The contemplated transaction is expected to be finalized in the second half of 2024.
