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Safran to merge with Zodiac Aerospace in a $10.6B takeover

Feb 15,2017

Safran, an international high-technology group, and Zodiac Aerospace a global leader in Aerosafety, Aircraft systems, Seats and Cabins, announced that they have entered into exclusive negotiations for an acquisition of Zodiac Aerospace by Safran through an agreed public offer of 29.47 per share and a subsequent merger on the basis of 0.485 Safran shares for one Zodiac Aerospace share. Prior to and conditional upon the merger, Safran would distribute a special dividend of 5.50 per share to its existing shareholders. The merger is valued at 10 billion ($10.6 billion).


The transaction would create a global leader in aircraft equipment, allying the market leading positions, expertise, technologies and talents of both Safran and Zodiac Aerospace. The new entity would combine Safran's capabilities in landing gear, wheels and brakes, nacelles, power systems, actuation and avionics, with Zodiac Aerospace's leading positions in seats, cabin interiors, power distribution, lighting, fuel, oxygen and fluid systems and safety equipment.


In electrical systems, Zodiac Aerospace's assets would reinforce Safran's portfolio of technologies and position the group ideally for future developments towards the "more electrical aircraft".


On a pro forma basis, including Safran's world leading propulsion business, the combined group would have around 92,000 employees (of which more than 45,000 in France), 21.2 billion ($22.5 billion) in adjusted revenues and 2.7 billion ($2.8 billion) in adjusted recurring operating income. On this basis the combined group would form the third largest player worldwide in the aerospace sector. The combined group would become the second largest player worldwide in aircraft equipment with pro forma revenues in these businesses of 10 billion ($10.6 billion). It would be present in over 60 countries.


According to the forecast, in the next 10 years, the global turbofan/turbojet engine accumulative total demand will exceed 73600 units, worth over USD 416 billion; total demand for turboshaft exceed 34,000 units, worth over USD 19 billion; turboprop engine total demand exceeds 1.6 million units, worth over USD 15 billion; piston engine cumulative total demand over 33,000 units, accounting for more than 60% of the general aviation power market, worth USD 30 billion. Under this background, Chinese Society of Aeronautics and Astronautics will hold China Aerospace Propulsion Technology Summit 2017 to promote the development of aerospace propulsion technology, providing strong technical support for aero engine industry. On behalf of the organizing committee, we sincerely invite you to this years CAPTS which will be held in Shenyang, on May 24th - 25th, 2017, to discuss aero engine new R&D and manufacturing trends. Hope the CAPTS series activities can bring you the maximum value.


To figure out more, please do not hesitate to contact Kara Wang, Marketing@galleon.cc

News Source: Aero Time

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