Thales enters into exclusive negotiations to sell its aeronautical electrical systems business to Safran
Thales’ aeronautical electrical system business (ELS) provides a full suite of critical electrical power systems embedded in prestigious civil and military platforms, while providing key support services to ELS’ global installed base. ELS is a key player in the global electrical power conversion market and holds solid positions in electrical power generation and electric motors, particularly in the defense and helicopter markets.
The transaction perimeter includes three sites in the Paris region, France, as well as the support, maintenance and production activities for aeronautical electrical equipment in Florida, United States and Singapore. ELS employs nearly 600 people globally and generated €124 million revenue in 2021 with blue-chip customers like Airbus, Boeing or Dassault Aviation.
Leveraging on its set of innovative electrical power systems and scarce research and development (R&D) capabilities, ELS is well positioned to benefit from the megatrend towards the More Electrical Aircraft (MEA). Following a competitive sale process led by Lincoln International, Thales has agreed to enter into exclusive negotiations to sell its aeronautical electrical system business to Safran.
This proposed transaction is part of the Thales Group’s strategy to refocus on its core businesses in aerospace, defense, security and digital identity. Through the ELS acquisition, Safran aims to decisively pursue its strategy as an equipment manufacturer positioned across the whole electrical chain. ELS’ electrical power conversion activities would make a significant contribution to Safran’s portfolio, which would expand further in the area of electrical power generation.
Leveraging its global aerospace and defense (A&D) experience and solid carve-out track record, Lincoln provided advisory and industry expertise to deliver a successful outcome, fending off the challenging commercial aerospace market environment triggered by the COVID-19 crisis, while meeting Thales’ strategic objectives.
Guillaume Suizdak, Managing Director in Lincoln’s Paris office, commented, “We see a massive A&D industry shift towards the MEA at play, triggering heavy investments across the A&D industry to tap this attractive future growth potential. In this promising market environment, Safran provides a key long-term support to the ELS franchise’s future development.”
Meet our Senior Team
View More Transactions in Aerospace & Defence
Lincoln International advised Latecoere a portfolio company of Searchlight on raising capital
Lincoln International advised ATL Partners on the acquisition of Aero Accessories
Lincoln International advised main shareholder on agreement to sell a minority stake of Figeac Aero to Tikehau Ace Capital
Lincoln International has advised Arsenal Capital Partners on the sale of Cyalume Technologies to Cadre Holdings
Lincoln International advised Thompson Street Capital Partners and Onward Capital on the sale of Domaille to ADDMAN Engineering, a portfolio company of American Industrial Partners
Lincoln International is pleased to announce that GEI and management have sold a significant stake in I-4S to Galiena Capital
Lincoln International is pleased to announce that Groupe Rossi Aéro has agreed to receive a capital investment from Tikehau Capital and Ace Capital
Any information or testimonials contained in this post may not be representative of the experience of other clients and is no guarantee of future performance or success.