Woodward Signs Agreement to Acquire Safran’s Electromechanical Actuation Business Based in North America
Woodward (WWD) has signed a definitive agreement to acquire Safran Electronics & Defense's electromechanical actuation business in North America. The acquisition includes operations assets, intellectual property, talent, and long-term customer agreements for Horizontal Stabilizer Trim Actuation (HSTA) systems, notably used in the Airbus A350. The deal encompasses other electromechanical products and electronic control units for commercial airliners and business aircraft.
The transaction is expected to close in mid-2025, subject to regulatory approvals and customary conditions. While financial terms were not disclosed, the acquisition is described as not financially material and was made in the ordinary course of business.
Woodward (WWD) ha firmato un accordo definitivo per acquisire l'attività di attuazione elettromeccanica di Safran Electronics & Defense in Nord America. L'acquisizione comprende risorse operative, proprietà intellettuale, talento e contratti con clienti a lungo termine per i sistemi di Attuazione del Trim Stabilizzatore Orizzontale (HSTA), utilizzati principalmente nell'Airbus A350. L'accordo include anche altri prodotti elettromeccanici e unità di controllo elettronico per aerei commerciali e aeromobili da affari.
La transazione dovrebbe chiudere a metà del 2025, soggetta ad approvazioni normative e condizioni consuete. Sebbene non siano stati divulgati i termini finanziari, l'acquisizione è descritta come non materialmente significativa ed è stata effettuata nel normale corso degli affari.
Woodward (WWD) ha firmado un acuerdo definitivo para adquirir el negocio de actuadores electromecánicos de Safran Electronics & Defense en América del Norte. La adquisición incluye activos operativos, propiedad intelectual, talento y acuerdos de clientes a largo plazo para los sistemas de Actuación del Trim del Estabilizador Horizontal (HSTA), utilizados notablemente en el Airbus A350. El acuerdo abarca otros productos electromecánicos y unidades de control electrónico para aviones comerciales y aeronaves de negocios.
Se espera que la transacción se cierre a mediados de 2025, sujeta a aprobaciones regulatorias y condiciones habituales. Aunque no se divulgaron los términos financieros, la adquisición se describe como no materialmente significativa y se realizó en el curso ordinario de los negocios.
우드워드 (WWD)는 북미에서 사프란 전자 방위의 전기 기계식 작동 사업을 인수하기 위한 최종 계약을 체결했습니다. 이 인수에는 운영 자산, 지적 재산, 인재 및 수직 안정기 트림 작동 시스템(HSTA)에 대한 장기 고객 계약이 포함되며, 이는 주로 에어버스 A350에 사용됩니다. 이 거래는 상업 항공기 및 비즈니스 항공기를 위한 다른 전기 기계식 제품과 전자 제어 장치도 포함합니다.
이번 거래는 규제 승인 및 일반적인 조건에 따라 2025년 중반에 마감될 것으로 예상됩니다. 재무 조건은 공개되지 않았지만, 이번 인수는 재무적으로 중요하지 않은 것으로 설명되며, 통상적인 사업 과정에서 이루어졌습니다.
Woodward (WWD) a signé un accord définitif pour acquérir l'activité d'actionnement électromécanique de Safran Electronics & Defense en Amérique du Nord. L'acquisition comprend des actifs opérationnels, des droits de propriété intellectuelle, des talents et des contrats clients à long terme pour les systèmes d'actionnement de trim de stabilisateur horizontal (HSTA), notamment utilisés dans l'Airbus A350. L'accord englobe également d'autres produits électromécaniques et unités de contrôle électronique pour les avions commerciaux et d'affaires.
La transaction devrait être finalisée à la mi-2025, sous réserve des approbations réglementaires et des conditions habituelles. Bien que les termes financiers n'aient pas été divulgués, l'acquisition est décrite comme n'ayant pas d'importance financière et a été réalisée dans le cadre de l'activité normale de l'entreprise.
Woodward (WWD) hat einen endgültigen Vertrag zur Übernahme von Safran Electronics & Defense's elektromechanischem Aktuatorengeschäft in Nordamerika unterzeichnet. Die Übernahme umfasst Betriebsvermögen, geistiges Eigentum, Talente und langfristige Kundenverträge für die Systeme zur Steuerung des horizontalen Stabilisators (HSTA), die insbesondere in der Airbus A350 verwendet werden. Der Deal umfasst auch andere elektromechanische Produkte und elektronische Steuergeräte für Verkehrsflugzeuge und Geschäftsflugzeuge.
Es wird erwartet, dass die Transaktion Mitte 2025 abgeschlossen wird, vorbehaltlich regulatorischer Genehmigungen und üblicher Bedingungen. Die finanziellen Einzelheiten wurden nicht bekannt gegeben, die Übernahme wird jedoch als finanziell nicht relevant beschrieben und wurde im Rahmen des normalen Geschäftsbetriebs durchgeführt.
- Acquisition expands WWD's technology platform for next-generation aircraft
- Increases shipset content for current widebody programs
- Adds advanced HSTA systems technology for aircraft stabilization
- Secures long-term customer agreements, including Airbus A350 program
- None.
Insights
The acquisition of Safran's electromechanical actuation business represents a strategic expansion of Woodward's aerospace portfolio, particularly in critical flight control systems. The deal specifically includes Horizontal Stabilizer Trim Actuation (HSTA) systems for the Airbus A350, positioning Woodward advantageously in the widebody aircraft market. The technology acquisition is pivotal for three reasons:
- It secures valuable intellectual property and proven technology in electromechanical actuation, essential for next-generation aircraft development
- The deal includes long-term customer agreements, providing stable revenue streams
- It strengthens Woodward's competitive position in the growing market for electric aircraft systems
The timing aligns with the industry's shift toward more electric aircraft architectures, where electromechanical systems are replacing traditional hydraulic systems. While financial terms weren't disclosed, the strategic value lies in the technology platform acquisition and established customer relationships, particularly with Airbus.
This transaction exemplifies a well-structured strategic acquisition that enhances Woodward's market position without overleveraging its balance sheet. The deal's structure as a business unit acquisition focusing on specific technology and operational assets suggests efficient capital allocation. Key value drivers include:
- Geographic diversification across US, Mexico and Canada operations
- Acquisition of specialized talent and intellectual property
- Established revenue streams through long-term customer agreements
While described as 'not financially material,' this suggests the purchase price is manageable within Woodward's current capital structure. The mid-2025 closing timeline indicates a complex regulatory approval process, typical for aerospace sector transactions involving sensitive technology transfers.
~Acquisition provides Woodward industry-proven electromechanical technology platform for next generation aircraft. It is a step forward for Safran towards the acquisition of Collins Aerospace actuation and flight control activities~
FORT COLLINS, Colo. and PARIS, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Woodward (NASDAQ: WWD), a global leader in aerospace and industrial energy control solutions, announced today that it has signed a definitive agreement to acquire the Safran Electronics & Defense electromechanical actuation business based in the United States, Mexico and Canada. The acquisition includes intellectual property, operations assets, talent, and long-term customer agreements for Horizontal Stabilizer Trim Actuation (HSTA) systems for aircraft stabilization to support safe and efficient flight, notably used for the Airbus A350.
The HSTA, a key product within the acquisition, represents the most advanced electromechanical control technology in aviation. The acquisition will also include other electromechanical products and electronic control units with a portfolio of commercial airliner and business aircraft applications. In addition, it will strengthen Woodward’s technology platform for the next generation of aircraft.
“The acquisition of Safran’s electromechanical actuation business aligns perfectly to Woodward’s growth and innovation value drivers,” said Chip Blankenship, Chairman and CEO of Woodward. “It increases our shipset content for current widebody programs and expands our industry-proven technology platform for Next Generation Single Aisle aircraft. Overall, this acquisition is an excellent fit for Woodward’s complementary activities. It is another example of how we’re focusing our resources and capital on Aerospace and Industrial product lines with the greatest potential to serve our customers well and increase long-term value for our shareholders.”
“We are confident that this important business will continue to thrive under Woodward’s leadership and commitment to innovation,” said Franck Saudo, CEO Safran Electronics & Defense. “We look forward to supporting a smooth and efficient transition for our customers. With our eyes riveted on accelerated value creation and the preparation of the next generation of aircraft, the transaction announced today is another important milestone towards the closing of the acquisition by Safran of Collins Aerospace’s actuation and flight control activities.”
The transaction is expected to close sometime in mid-2025, once all customary terms and conditions of the agreement are met and regulatory requirements are fulfilled.
The acquisition was made in the ordinary course of business, is not financially material, and financial terms of the transaction are not disclosed at this time. Additional information, if any, will be disclosed in upcoming periodic reports, in compliance with applicable rules.
About Woodward, Inc.
Woodward (NASDAQ: WWD) is the global leader in the design, manufacture, and service of energy conversion and control solutions for the aerospace and industrial equipment markets. Our purpose is to design and deliver energy control solutions our partners count on to power a clean future. Our innovative fluid, combustion, electrical, propulsion and motion control systems perform in some of the world’s harshest environments. Woodward is a global company headquartered in Fort Collins, Colorado, USA. Visit our website at www.woodward.com.
About Safran and Safran Electronics and Defense
Safran is an international high-technology group, operating in the aviation (propulsion, equipment and interiors), defense and space markets. Its core purpose is to contribute to a safer, more sustainable world, where air transport is more environmentally friendly, comfortable and accessible. Safran has a global presence, with 92,000 employees and sales of 23.2 billion euros in 2023, and holds, alone or in partnership, world or regional leadership positions in its core markets. Safran is listed on the Euronext Paris stock exchange and is part of the CAC 40 and Euro Stoxx 50 indices.
Safran Electronics & Defense offers its customers on-board intelligence solutions allowing them to understand the environment, to reduce mental load and to guarantee a trajectory, even in critical situations, in all environments: on land, at sea, in the sky or space. The company harnesses the expertise of its 13,000 employees towards these three functions: observe, decide and guide, for the civil and military markets. For more information: www.safran-group.com and www.safran-group.com/fr/societes/safran-electronics-defense
Press Contacts :
Safran
Catherine Malek : catherine.malek@safrangroup.com + 33 6 47 88 03 17
Isabelle Javary : isabelle.javary@safrangroup.com + 33 7 86 10 59 16
Woodward
Jennifer Regina : jennifer.regina@woodward.com +1 970 559 8840
Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. The forward-looking statements include statements related to the pending acquisition by Woodward of Safran Electronics and Defense’s electromechanical actuation business, the scope of such acquisition including assets, product lines, intellectual property, and contracts, anticipated transaction timing, the conditions to the completion of that sale, and the expected benefits and opportunities and possible implications of the transaction. Factors and uncertainties that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the risk that the transaction may not be completed within the expected time frame or at all, including as a result of delays associated with the receipt of required approvals and risks associated with the announcement and pendency of the transaction on relationships with third parties, or otherwise. Neither Woodward nor Safran Electronics and Defense undertake any obligation to update these forward-looking statements except as required by applicable law.
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