Safran agrees to buy Raytheon aerospace assets for $1.8 billion

Safran SA agreed to buy an aerospace business from Raytheon Technologies Corp. in cash for an enterprise value of $1.8 billion, adding flight-control and actuation activities alongside 3,700 employees.

The planned purchase, ranking among Safran’s biggest in recent years, follows an announcement early last month by Safran that it was in talks with Raytheon about a transaction. In a statement on Friday, Safran said the deal will add sales of about $1.5 billion and an Ebitda of $130 million in 2024, with expected synergies of about $50 million, Bloomberg reports.

Bloomberg News reported in January that Arlington, Virginia-based Raytheon was exploring a sale of the unit. Led by Chief Executive Officer Gregory Hayes, Raytheon consists of the Pratt & Whitney aircraft engine unit, Collins Aerospace and a large defence portfolio spanning missiles, space systems and intelligence products.

Safran also makes engines in collaboration with General Electric Co., and the company has products in its portfolio that include commercial aircraft galleys, landing gear and missiles.