French aerospace group Safran is in early talks about acquiring the space assets of Italian defence and rocket equipment specialist Avio.
Safran CEO Jean-Paul Herteman said during a conference call that it has started discussions with the group, which…
French aerospace group Safran is in early talks about acquiring the space assets of Italian defence and rocket equipment specialist Avio.
Safran CEO Jean-Paul Herteman said during a conference call that it has started discussions with the group, which is majority-owned by private equity firm Cinven.
“The businesses complement each other well, and this could be an opportunity,” he said.
The company declined to comment further.
Late last year Safran lost out to General Electric (GE) in bidding for Avio’s aviation assets, which ended up being acquired for US$4.3bn.
The French group could also have a battle on its hands for the remainder of Avio, with Cinven understood to be inviting competitive bids. The Italian Strategic Fund (FSI), which is backed by the Italian government, has previously been in the frame for the space assets.
Being state-controlled, FSI could also have an advantage as Avio is partly owned by Italian defence group Finmeccanica, and the space unit is of strategic importance to the country’s government.
However, a source close to the seller told SatelliteFinance that the group was not expecting the Italian government to make a sale to Safran difficult, as its agreement to sell assets to GE was well received.
Avio claims to produce 14% of the European Ariane 5 satellite launcher. It manufactures two lateral motors and the liquid-oxygen turbo-pump of the rocket’s Vulcain cryogenic motor. The company also acted as a complete systems integrator for the Vega launcher, which completed its maiden flight from French Guyana in February 2012.
Cinven declined to comment. It is thought to have retained Rothschild, which advised it on the aviation asset sale, to advise it on the possible deal.
