France’s Safran Group last Friday said it has agreed to acquire the actuation and flight controls business of Collins Aerospace, an operating segment of RTX [RTX], for $1.8 billion in cash, complementing the French company’s current portfolio in this space.
The deal is expected to close during the second half of 2024.
Collins’ actuation and flight controls business is expected to generate about $1.5 billion in sales in 2024, $130 million in earnings before interest, taxes, depreciation and amortization. About 40 percent of sales are from the aftermarket.
The business has about 3,700 employees and provides hydraulic, electro-hydraulic and electromechanical actuation and flight control systems for commercial and military aircraft, helicopters, and precision weapons. Commercial customers account for 63 percent of the business, military 25 percent, and helicopters 12 percent of the Collins business being acquired.
Once the transaction closes, Safran said its actuation and flight control business will have about $1.8 billion in sales and provide comprehensive offerings to its customers. The acquisition will “position us extremely well for next-generation platforms as the segments move toward increased electrification,” Olivier Andries, Safran’s CEO, said in a statement.
Safran said the acquisition will eventually generate about $50 million in annual pre-tax cost synergies that will begin in 2025 and be achieved in 2028.
Collin’s actuation and flight controls business operates from eight production sites, seven in Europe and one in Indonesia.