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Safran is in talks to acquire Tels’ avionics electrical systems and engine businesses. (Photo: Safran Group)
According to the announcement of the two French companies on September 5, Safran entered into negotiations with Teles to acquire the avionics electrical systems and aviation electric motors companies.
The proposed acquisition will strengthen Safran’s electric power conversion capabilities, and will include Thales Avionics Electrical Systems and Thales Avionics Electrical Motors sites in the US, France and Singapore. By 2021, these two businesses will employ around 600 people and generate €124 million in revenue for Thales.
The two companies did not disclose the price of the purchase by Safran, if it eventually happens.
“We are excited by the prospect of partnering with Teles Electric Group to provide us with greater efficiency across the power chain,” Safran Electric & Power CEO Stefan Kuel said in a statement.
The acquisition – if completed – would be the latest avionics-focused acquisition for Safran, following the acquisition of Space, Navigation and Timing (PNT) electronics maker Orolia in July. Safran intends to use the two Thales business units to expand further into electric power generation, particularly in the defense and helicopter markets.
The acquisition will focus on acquiring Thales’ power conversion capabilities. (Photo: Quentin Reytinas)
According to Thales on its website, both the avionics electric motors and electrical systems businesses are separate from other aerospace and avionics businesses that include aircraft and business jets, as well as in-flight entertainment and communications systems. The company wants to use the potential sale to focus on its core businesses around aerospace and defense, security and digital identity.
“This project will allow our aeronautical electrical systems teams to develop an optimal environment and bring their leading expertise in electrical conversion, power generation and motors to Safran Electrical & Power,” Yannick Assouad, executive vice president of Teles Avionics, said in a statement. “As such, the proposed acquisition gives these activities strong prospects in a dynamic growth market. More than ever, Thales will be able to focus on developing world-class avionics solutions.”
Safran expects the acquisition to happen next year.
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