Safran has entered into exclusive negotiations for the acquisition of Zodiac Aerospace, Safran says. Through the merger, Safran would add Zodiac Aerospace's services in seats, cabin interiors, power distribution, lighting, fuel, oxygen and fluid systems, and safety equipment to its capabilities in landing gear, wheels and brakes, nacelles, power systems, actuation, and avionics.
Zodiac Aerospace's RAVE provides an independent in-flight entertainment system. Photo: Zodiac
With its eye toward developing “more electrical aircraft,” Safran says this acquisition would give it better positioning to do so. The business move would align with Safran’s strategy to “focus on its core aerospace and defense businesses.” The company says it also looks to leverage Zodiac Aerospace’s North American presence to expand its reach.
News reports put the cost of the acquisition at $9 billion. Safran’s board of directors and Zodiac Aerospace’s supervisory board have both approved the principle of the planned transaction unanimously. It has been submitted to Zodiac Aerospace’s employee representatives. The final authorities on the merger would be the shareholders of both entities, relevant antitrust clearances, regulatory bodies and other customary conditions. Completion of the tender offer is expected by the end of the fourth quarter of 2017, with merger completion expected early next year.