French-based defense contractor Safran has entered negotiations with Thales to acquire its aeronautical electrical systems business segment.
The potential deal includes Thales Avionics Electrical Motors and Thales Avionics Electrical Systems, which owns facilities in Chatou, Meru, and Conflans-Sainte-Honorine around Paris.
The bid includes acquiring Thales’ support, maintenance, and production activities for aeronautical electrical equipment in Singapore and Orlando, Florida, in the US.
According to the company, the planned acquisition is part of Safran Electrical & Power’s strategy to enlarge its share of the electrical equipment manufacturing market.
Safran also aims to expand in the electrical power generation industry to cater to the defense and vertical aircraft sectors.
“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,” Safran Electrical & Power Chief Executive Officer Stéphane Cueille said.
For Thales, the potential deal is part of a bid to refocus on its core businesses in defense, security, aerospace, and cybersecurity.
“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,” Thales Avionics Executive Vice-President Yannick Assouad explained.
“In consequence, the proposed acquisition would provide these activities with solid prospects in a market that is showing dynamic growth,” he continued.
If approved, the transaction is expected to be complete by 2023.