Safran and Zodiac to create EUR 21 billion company

The agreed public offer sees EUR 29.47 per share and a subsequent merger on the basis of 0.485 Safran shares for one Zodiac Aerospace share. The new entity would combine Safran's capabilities in landing gear, wheels and brakes, nacelles, power systems, actuation and avionics, with Zodiac Aerospace's in the segments 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 propulsion business, the combined group would have around 92'000 employees (of which more than 45'000 in France) and about EUR 21.2 billion in adjusted revenues. 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 about EUR 10 billion. Didier Domange, Chairman of Zodiac Aerospace's Supervisory Board, said: "The creation of this new global leader in the aerospace industry is led by a strong industrial rationale and a long term vision. The new group will be ideally positioned to support its clients in their ambitious programs for the future. We are delighted to participate in the combination of two leaders of the industry with complementary positions and strong innovation abilities dedicated to their customers." Philippe Petitcolin, CEO of Safran, said: "The acquisition of Zodiac Aerospace represents a unique opportunity at this point in Safran's development, just a few months after initiating the refocus of the group on our core activities of Aerospace and Defense. The technological complementarities will ensure that we accelerate domains as strategic as critical systems and the more electrical aircraft, which make up 40% of Zodiac Aerospace's activities. Our industrial expertise will also accelerate the return to their historical levels of profitability in the seats and cabin activities. Finally, and above all, the strength of Safran's managerial talent and the timing of this transaction will ensure the success of integrating Zodiac Aerospace into our Equipment businesses while Propulsion is focused on the LEAP programme. I am eager to drive this strategic move." The finalisation of the transaction would be subject to the approval of Safran's and Zodiac Aerospace's shareholders – and as always – relevant antitrust clearances, regulatory approvals and other customary conditions. Completion of the tender offer is expected by the end of the 4th quarter 2017 and the merger is expected to be complete in early 2018.