By Adria Calatayud

Safran said Friday that it plans to acquire the actuation and flight-control business from Raytheon Technologies' Collins Aerospace unit in a cash offer that values the target at $1.8 billion including debt.

The French aerospace-industry supplier said the acquisition would strengthen its position in critical flight control and actuation functions, given that the businesses have complementary product offerings, customer exposures and capabilities.

"The transaction would enable us to deliver a comprehensive offering to our clients and position us extremely well for next-generation platforms as the segments move toward increased electrification," Safran Chief Executive Olivier Andries said.

Collins Aerospace's actuation and flight control is expected to generate sales of around $1.5 billion and earnings before interest, taxes, depreciation and amortization of $130 million in 2024, Safran estimates.

Closing of the deal is expected in the second half of 2024, subject to consultation with employee-representative bodies of both companies as well as regulatory approvals, Safran said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

July 21, 2023 02:52 ET (06:52 GMT)

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