Airbus DS has earmarked its commercial satcoms services unit for sale along with a suite of other non-core assets to strengthen its space, military aircraft, missiles and wider services and systems portfolio.
The European aerospace giant said its…
Airbus DS has earmarked its commercial satcoms services unit for sale along with a suite of other non-core assets to strengthen its space, military aircraft, missiles and wider services and systems portfolio.
The European aerospace giant said its commercial and para-public communication business, which includes professional mobile radio and commercial satcoms services activities, will be better positioned for growth under different ownership structures.
A spokeswoman said it hoped to find buyers in the next few months so it can wrap up the divestitures – the latest step in the Airbus group’s wider restructuring strategy – by the middle of 2015.
Other subsidiaries and ventures on the block include Fairchild Controls, Rostock System-Technik, AvDef, ESG and Atlas Elektronik.
“For the division’s security and defence electronics businesses further industrial alternatives will be explored in order to best develop and position these businesses for future growth and value creation,” stated the group.
Total revenue of all the assets up for sale comes to around €2bn (US$2.6bn), or just over 14% of the €14bn in sales that the Airbus DS division makes overall.
Airbus DS CEO Bernhard Gerwert said: “Given the tight budgetary situation in our home countries and increasing competition in global markets, the portfolio review is an essential element to further develop our defence and space business and to ensure its competitiveness.
“We have identified those segments where this is an achievable target and those where we should explore alternative options. In short, the portfolio review is a logical next step in the overall transformation process.”
That process kicked off last year when Airbus, then known as EADS, integrated its French satellite maker Astrium with its military units – transport aircraft specialist Airbus Military and defence firm Cassidian – creating Airbus DS.
The commercial satcoms business that Airbus is now selling draws on assets previously held by Cassidian and service provider Vizada, which it bought from private equity firm Apax France for roughly US$960m in 2011.
Another key part of Airbus DS’ portfolio optimisation strategy saw it form a 50-50 joint venture with French aerospace group Safran in June 2014, when they set out aims to combine the launcher assets of their rocket propulsion systems to help cut production costs.
The JV could have wider implications for Paris-based launcher Arianespace, and the future of the Ariane 5 rocket that they help to make.
Airbus DS sits alongside two other divisions: Airbus, responsible for commercial aircraft activities, and Airbus Helicopters, which comprises commercial and military helicopter assets.
