Collins Aerospace in Wolverhampton taken over by French group Safran
A Wolverhampton aerospace business has been taken over by French group Safran in a deal valued at around £1.3 billion.
Multinational technology group Safran announced on Monday (July 21) it had finalised the acquisition of Collins Aerospace’s flight control and actuation operation in Stafford Road which makes parts for aircraft manufacturers around the world.
The Black Country operation at Fordhouses employs more than 1,300 people and is a major employer in Wolverhampton.
A leader in technologically advanced and intelligent solutions for the global aerospace and defence industry, its high tech actuation and flight control systems are mission critical systems for commercial and military aircraft, and helicopters.
The Wolverhampton operation, which supplies some of the biggest names in the industry, dates from the 1940s and was originally H.M. Hobson Ltd before being acquired by Lucas Aerospace in 1970 and later Goodrich & UTC.
The takeover deal sees Safran, headquartered in Paris, become a global leader in flight control and actuation systems and well-positioned for next-generation platforms.
Olivier Andriès, CEO of Safran, said: “This acquisition offers a unique opportunity to solidify our position in mission critical flight control and actuation functions and create a global leader in this domain.
“It will enable us to deliver a comprehensive offering to our customers and position us extremely well for next-generation aircraft.
"This business fits perfectly with both our product portfolio and our DNA with a high technology content, recurring aftermarket sales and profitable growth.”
Flight control and actuation systems from Collins are integrated on board 180 platforms, and generated revenue of around $1.55 billion (£1.15bn) in 2024 and an EBITDA of about $130 million (£96.3m).
The business will be consolidated from August 1, within Safran Electronics & Defense, the French company said.
To meet the decarbonisation goals of the industry, the next generation of single-aisle aircraft will be increasingly electrified - requiring a breakthrough in flight control and actuation systems. Safran said the combination of Collins’ best-in-class hydraulic and mechanical actuation capabilities with Safran’s strong know-how in electro-mechanical actuation and electronics will enable the company to meet the challenges ahead.
The acquisition, which has been in the pipeline for a couple of years, also brings a wealth of strategic benefits for Safran which will be able to offer an expanded portfolio in flight control and actuation systems.
The deal also means attractive recurring revenue potential from service activities, representing approximately 40 per cent of turnover.
A statement released by Safran states: “The enterprise value of the acquired business amounts to $1.8 billion (£1.33bn), with an accretive impact on Safran earnings per share from year one.
“The transaction is expected to generate approximately $50 million of annual pre-tax run-rate cost synergies by 2028.”
It adds that in order to respect regulatory requirements, Safran has simultaneously completed the sale of its North American electro-mechanical actuation business, with approximately $65 million of sales in 2024, to Woodward, Inc.
The acquisition had been the subject of an investigation by the Competition & Markets Authority but on June 17 undertakings in lieu of reference (UILs) offered by Safran were accepted and the CMA confirmed: " The merger will therefore not be referred for a phase 2 investigation."
Collins Aerospace has been contacted for comment.
