New joint venture will leverage capabilities of two aerospace leaders to combine the best technologies and services for customers, the company said.
Boeing [NYSE: BA] and Safran [EPA: SAF] have agreed to a joint partnership to design, build and service Auxiliary Power Units (APUs), creating better value for customers and for both companies, the company said.
An APU is an onboard engine that is used to primarily start the main engines and power aircraft systems on the ground and, if necessary, in flight.
The agreement will establish an important relationship between two of the world´s aerospace companies to work together on products and expanded service capabilities to benefit both customers and the industry at large. Both companies will have a 50 percent stake in the partnership, which will be based in the United States. The completion of the transaction is subject to customary conditions including regulatory and antitrust clearance. The deal is expected to close in the second-half of 2018.
Safran currently supplies a wide range of components to Boeing commercial and defense programs, including as a partner to produce CFM´s LEAP-1B engine for the 737 MAX (through CFM International, a 50/50 JV between Safran Aircraft Engines and GE). Boeing and Safran also are partners in MATIS, a joint venture in Morocco producing wiring products for several airframe and engine companies.
Safran is an international high-technology group, operating in the aircraft propulsion and equipment, space and defense markets. Safran has a global presence, with more than 58,000 employees and sales of 16.5 billion euros in 2017. Working alone or in partnership, Safran holds world or European leadership positions in its core markets. Safran undertakes Research & Development programs to meet fast-changing market requirements, with total R&D expenditures of around 1.4 billion euros in 2017. Safran is listed on the Euronext Paris stock exchange, and is part of the CAC 40 and Euro Stoxx 50 indices. In February 2018, Safran took control of Zodiac Aerospace, significantly expanding its aircraft equipment activities. Zodiac Aerospace has 32,500 employees and generated sales of 5.1 billion euros for its fiscal year ended August 31, 2017.
Boeing is the world´s largest aerospace company and manufacturer of commercial airplanes and defense, space and security systems. Boeing is also the world provider of combined commercial airlines and government services with customers in more than 150 countries. The company´s products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and communication systems, and performance-based logistics and training. Boeing employs approximately 140,000 people across the United States and in more than 65 countries.