Aircraft engine maker Safran to buy Zodiac in $10B billion deal
Paris companies call it the creation of a ``new global leader in aerospace.''
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, both based in or around Paris, announced the creation of a “new global leader in aerospace.”
Safran will offer 29.47 euros per share, which is 26.4% above Zodiac’s closing share price Wednesday. If it gets more than 50% 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.”