Safran In Talks to Sell ID and Security Business to Advent International
September 29 2016 - 9:46AM
Dow Jones News
By Robert Wall
French aerospace and defense supplier Safran SA said Thursday it
has begun exclusive talks to sell its identity and security
business in a transaction that values the operation at EUR2.4
billion ($2.7 billion).
Safran said it was planning to sell the assets to private-equity
firm Advent International Corp. The deal is expected to close next
year, the Paris-based company said, pending regulatory approvals in
the U.S. and Europe.
The move comes as Safran focuses increasingly on its aerospace
and defense activities, where it is a major supplier of everything
from engines for Boeing Co. and Airbus Group SE planes to rockets.
Safran this year sold its Morpho Detection explosives detection
business to Smiths Group PLC.
Safran chairman Ross McInnes said that "upon the closing of this
transaction, which would follow our agreement to sell our detection
activities, Safran would be a group entirely focused on aerospace
and defense and concentrated on its own path of strong growth and
high profitability."
Safran said the identity and security operations would be put
together with French digital security assets from Oberthur
Technologies, which was acquired by Advent International in 2011.
The combined business would have EUR2.8 billion in sales, Safran
said, and would remain based in France.
The deal will also involve French public investment bank
Bpifrance, which will take a stake and join the board of the
combined entity, Safran said.
Safran would result in a pretax capital gain for the company, it
said.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
September 29, 2016 09:31 ET (13:31 GMT)
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