Safran Acquires Collins Aerospace's Actuation And Flight Control Business In $1.8B Deal
Portfolio Pulse from Shivani Kumaresan
French aerospace company Safran (OTC:SAFRY) is set to acquire an aerospace business from RTX Corp (NYSE:RTX) for $1.8 billion. The business, part of Collins Aerospace, provides actuation and flight control systems. The deal is expected to boost Safran's control in critical flight control and actuation functions, and have an accretive impact on earnings per share from year one. The deal is expected to close in H2 2024.
July 21, 2023 | 11:42 am
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NEUTRAL IMPACT
RTX Corp is selling its aerospace business to Safran for $1.8 billion.
The sale of the aerospace business could lead to a short-term increase in RTX Corp's cash reserves, but the long-term impact on its stock price is uncertain as it depends on how the company plans to use the proceeds from the sale.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 100
POSITIVE IMPACT
Safran's acquisition of RTX Corp's aerospace business is expected to boost its control in critical flight control and actuation functions, and have an accretive impact on earnings per share from year one.
The acquisition is expected to strengthen Safran's position in the aerospace industry and have a positive impact on its earnings per share, which could lead to a rise in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100