Safran is negotiating a potential acquisition of Thales' avionics electrical systems and motors businesses. (Photo: Safran Group)
Safran has entered into negotiations with Thales to pursue the acquisition of its avionics electrical systems and avionics electrical motors companies, according to a Sept. 5 announcement by the two French companies.
The proposed acquisition would strengthen Safran's electric power conversion capabilities, and it includes Thales Avionics Electrical Systems and Thales Avionics Electrical Motors with sites in the U.S., France, and Singapore. In 2021, these two businesses employed nearly 600 people and generated revenues of €124 million for Thales.
The two companies have not disclosed a price for the acquisition by Safran, if it does eventually occur.
"We are delighted with the prospect of joining forces with Thales's electrical teams, which will give us even greater competences over the electrical chain, thanks in particular to their leading skills in electrical conversion," Stéphane Cueille, Chief Executive Officer of Safran Electrical & Power, said in a statement. "The complementary nature of our expertise will also enable us to provide the market with ever more relevant and effective solutions."
The acquisition—if it takes place—would be the latest avionics-focused purchase for Safran, following their acquisition of position, navigation, and timing (PNT) electronics maker Orolia in July. Safran wants to use the two Thales business units to "expand further in the area of electrical power generation, particularly in the defense and helicopter markets," according to their announcement proposing the acquisition.
The acquisition focuses on acquiring the electrical power conversion capabilities of Thales. (Photo: Quentin Reytinas)
Thales, on its website, notes that both the avionics electrical motors and electrical systems businesses are separate from its other aerospace and avionics businesses that include those developing its cockpit avionics for airliners and business jets as well as in-flight entertainment and connectivity systems. The company wants to use the potential sale to refocus on its core businesses across aerospace and defense, security, and digital identity.
"This project would provide our aeronautical electrical systems teams with an excellent environment in which to develop and would enable them to bring their leading expertise in electrical conversion, power generation and motors to Safran Electrical & Power," Yannick Assouad, Executive Vice-President, Avionics of Thales, said in a statement. "In consequence, the proposed acquisition would provide these activities with solid prospects in a market that is showing dynamic growth. More than ever, it would allow Thales to focus on developing its world-class critical avionics solutions."
Safran expects the acquisition to occur next year.