Safran, an international high-technology group, and Zodiac Aerospace, global leader in Aerosafety, Aircraft systems, Seats and Cabins, said that they have entered into exclusive negotiations for purchase 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. Earlier and based upon the merger, Safran would distribute a special dividend of €5.50 per share to its present shareholders. The merger is valued at €10 billion ($10.6 billion).
The new entity would combine both Safran’s and Zodiac Aerospace,s potentials creating a global leader in aircraft equipment. Safran’s capabilities in landing gear, wheels and brakes, nacelles, power systems, actuation and avionics, as well as Zodiac Aerospace’s leading positions in seats, cabin interiors, power distribution, lighting, fuel, oxygen and fluid systems and safety equipment help in allying the market leading positions, expertise, technologies and talents of both Safran and Zodiac Aerospace.
In electrical systems, Zodiac Aerospace’s resources would strengthen Safran’s portfolio of technologies and position the group preferably for future developments towards the “more electrical aircraft”.
The combined group would have around 92,000 employees, €21.2 billion in adjusted revenues and €2.7 billion in adjusted recurring operating income therefore might make it the third largest player worldwide in the aerospace industry. The combined group would become the second largest player worldwide in aircraft equipment with pro forma revenues in these businesses of €10 billion. It would be present in over 60 countries.