France-based company Safran has entered into discussions to acquire Thales’ aeronautical electrical systems business.
Units included under this potential deal are two France-headquartered companies, Thales Avionics Electrical Motors and Thales Avionics Electrical Systems, with facilities in Chatou, Conflans-Sainte-Honorine, and Meru in Paris.
It will also include aeronautical electrical equipment related support, maintenance, and production activities in Orlando, US, and Singapore.
Last year, revenues generated from this aeronautical electrical systems business were approximately $123.45m (€124m). The business employed nearly 600 people.
Anticipated to take place next year, the potential deal depends on regulatory approvals and on the information and consultation procedures with the employee representative bodies of the two companies.
Safran Electrical and Power CEO Stéphane Cueille said: “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.”
Once acquired, this aeronautical business will empower Safran’s strategy to position itself as an equipment manufacturer across the electrical chain.
Safran noted that the electric power conversion activities also play a crucial role in the electric motors and power generation in both the military and civil aeronautics domains.
The acquisition will further allow Safran to expand its portfolio in the defence and helicopter markets.
This transaction will also allow Thales to refocus on its aerospace, digital identity, and security, as well as defence and security businesses.
Thales Avionics executive vice-president Yannick Assouad said: “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 and Power.”
