French aerospace parts manufacturers merge in US$10.3B deal
Engine maker Safran will buy Zodiac Aerospace, which focuses on cabins and seats; the deal is touted as good one for France's aero sector
PARIS—Aircraft-engine company Safran has agreed to buy seat and cabin manufacturer Zodiac Aerospace in a deal worth 9.7 billion euros ($10.3 billion), including debt.
The companies are both based near Paris.
Safran will offer 29.47 euros per share, which is 26.4 per cent above Zodiac’s Jan. 18 closing share price. If it gets more than 50 per cent of the share capital, it will then merge the rest of the shares on the basis of 0.485 Safran shares for one Zodiac share.
Safran shareholders will also receive a special dividend of 5.5 euros per share.
The deal, supported by the French state, requires shareholders’ approval.
French President Francois Hollande said in statement that the deal “will strengthen the French aeronautics industry.”