PARIS Oct 16 French aerospace firm Safran
said it had agreed to buy the electrical power systems
activities of Goodrich, owned by United Technologies,
for around 310 million euros ($401 million) in cash.
Deals in European aerospace and defence are in focus after
a proposed $45 billion merger between Airbus parent firm EADS
and British defence firm BAE Systems collapsed
The Safran transaction is expected to close late in 2012 or
early in 2013. It includes the Goodrich division's 60 percent
stake in Aerolec, a joint venture with Thales.
Aerolec supplies Airbus with the main electrical power
generation equipment used aboard the A380 superjumbo airliner
and A400M military transport plane.
Safran shares were up 1.9 percent to 30.26 euros, making
them the third-highest gainer on the Paris CAC 40 index
which was up 0.8 percent.
"This acquisition marks a leap forward for Safran in
electric power systems, particularly in electric power
generation and primary and secondary distribution where it is
taking the global no. 2 spot," a Paris-based trader said.
Safran said the Goodrich operations were expected to
generate revenues of over $200 million in 2012, of which the
aftermarket business should contribute half.
Safran was warned by activist investor The Children's
Investment Fund Management(TCI) last week to avoid making "value
destructive" acquisitions outside the civil aerospace sector.