Safran closes deal with Collins Aerospace

Safran closes deal with Collins Aerospace

French aerospace and defense group Safran has finalized its acquisition of Collins Aerospace's flight control and actuation activities. The deal, which was initially announced in 2023, was cleared by the European Commission in April and completed on July 21, 2025 [1][2].

The acquisition will see Collins Aerospace's flight control and actuation business, which generated approximately $1.55 billion in revenue in 2024, integrated into Safran's Electronics & Defense division from August 1, 2025 [3]. The transaction is expected to generate around $50 million of annual run-rate cost synergies by 2028 [1][2].

Safran CEO Olivier Andries stated, "This acquisition offers a unique opportunity to solidify our position in mission-critical flight control and actuation functions and create a global leader in this domain" [1][2]. The acquisition will bolster Safran's capabilities in flight control and actuation systems, positioning it as a leader in next-generation aircraft technologies. The combined entity will leverage Collins' hydraulic and mechanical actuation capabilities and Safran's expertise in electro-mechanical actuation and electronics to meet the industry's decarbonization ambitions [3].

The acquisition also strengthens Safran's position in helicopter and nacelle actuation and enhances its defense segment offerings. The deal will provide Safran with a more balanced exposure across commercial, military, and helicopter segments, as well as attractive recurring revenue potential from service activities [3].

The enterprise value of the acquired business amounts to $1.8 billion, with an accretive impact on Safran's earnings per share from year one. To respect regulatory requirements, Safran has also completed the sale of its North American electro-mechanical actuation business to Woodward, Inc. [3].

References:
[1] https://finance.yahoo.com/news/safran-finalises-acquisition-collins-aerospace-164723428.html
[2] https://www.reuters.com/legal/transactional/safran-finalises-acquisition-collins-aerospace-flight-controls-business-2025-07-21/
[3] https://www.safran-group.com/pressroom/safran-announces-acquisition-flight-control-and-actuation-activities-collins-aerospace-2025-07-21