France has raised €448.5 million ($576.9 million) by selling 3.12% of Safran, just as the aerospace firm completed its acquisition of Goodrich Electrical Power Systems (GEPS).
French finance and economy minister Pierre Moscovici detailed plans to sell the 13 million shares to institutional investors Tuesday, slimming France’s shareholding to 27.08%. On Wednesday Moscovici announced the successful completion of the placement.
Moscovici said France intends to remain a Safran shareholder in the medium term. He added that its lead shareholding and double voting rights will safeguard its influence in Safran’s corporate management. “This share sale forms part of the state’s active portfolio management, which aims to protect national strategic interests while freeing up fresh funding for sectors which can deliver further economic development,” he said.
In a separate transaction, Safran announced it completed the €300 million acquisition of on-board aerospace electrical power systems specialist GEPS on Tuesday.
Safran, which plans to consolidate GEPS into its existing Aircraft Equipment business from April 1, expects GEPS to deliver €120 million in additional revenue during the remainder of 2013. Roughly half of this will stem from spares and MRO services. GEPS employs roughly 460 people in the UK and a further 100 in Ohio in the USA.
“GEPS brings new capabilities to Safran’s product offering, including the critical electrical power generation know-how and experience that is the heart of electrical power systems. This transaction, by combining GEPS and Safran’s complementary strengths, gives birth to a world leader in aerospace electrical power systems with a comprehensive product portfolio,” said Safran in a statement.
Safran, which is active in aerospace propulsion and equipment, defense and security, generated sales of €13.6 billion in 2012.