Safran, an international high-technology group, and Zodiac Aerospace – a global leader in Aerosafety, Aircraft systems, Seats and Cabins, announced that they have entered into exclusive negotiations for an acquisition 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.
Prior to and conditional upon the merger, Safran would distribute a special dividend of €5.50 per share to its existing shareholders. The merger is valued at €10 billion ($10.6 billion). French jet interiors supplier Zodiac has been the subject of takeover speculation for months after issuing a series of profit warnings. It pledged in November to return to traditional levels of profitability by 2019-20, but its forecast for this year fell short of analysts’ expectations. Safran tried to woo family-controlled Zodiac in 2010 only to be rebuffed before launching a bid. 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”.
The deal, supported by the French state, requires shareholders’ approval. French President Francois Hollande said the deal “will strengthen the French aeronautics industry.”