MIAMI — French aerospace firm Safran SA said Thursday it had agreed to buy Zodiac Aerospace in a deal valued at $9 billion.
According to Safran, “the transaction would create a global leader in aircraft equipment, allying the market leading positions, expertise, technologies and talents of both Safran and Zodiac Aerospace.”
The announcement takes place only three months after Rockwell Collins agreed to buy B/E Aerospace, in a deal that would unite two of the biggest suppliers to operators and airframers.
Safran is buying Zodiac after it saw its share price drop amid industrial actions, which caused delays in the supply of cabin fitting and seats for key customers. in September 2015, American Airlines dropped Zodiac Aerospace as supplier of lie-flat business seats on its Boeing 787-9s and some 777-200s, due to such delays.
Also, last June, Airbus has opted to deselected Zodiac from its interiors catalogue for the A330neo family aircraft, while publicly chastising Zodiac for the late delivery of lavatory components for the A350-900.
The finalization of the transaction would be subject to the approval of Safran’s and Zodiac Aerospace’s shareholders, relevant antitrust clearances, regulatory approvals and other customary conditions.
The completion of the tender offer is expected by the end of the 4th quarter 2017 and completion of the merger is expected early 2018.