Safran in exclusive discussions with Hexcel for the sale of Structil
Le Haillan, June 1, 2017
Safran Ceramics announced today that, along with co-shareholder Mitsubishi Chemical Corporation, it has started exclusive discussions with Hexcel to sell all shares and voting rights in the company Structil, jointly owned by Safran Ceramics (80.05%) and Mitsubishi Chemical Corporation (19.95%).
Structil become part of Safran when the latter acquired SNPE's energetic materials business in 2011. Structil designs, produces and sells structural adhesives and high-performance carbon-fiber composite materials for aerospace and other high-tech industries. In 2016 Structil recorded sales of 19 million euros. It has about 70 employees at its plant in Vert-Le-Petit, near Paris.
Hexcel, a benchmark vendor for Safran, is a global leader in advanced composites technology. It has over 6,300 employees worldwide, including more than 1,000 in France at five plants, and posted sales of about $2 billion in 2016 (more than one-fourth in France). Over 85% of its sales are to the aerospace sector, including products for airplanes from Airbus (especially the A350 XWB) and Boeing, and the LEAP engine from Safran.
Gérard Frut, the Chief Executive Officer of Safran Ceramics, said: "The project proposed by Hexcel would make Structil an integral part of the strategy applied by a global leader in advanced composites, with solid experience in production, widely recognized by its customers, especially in France, where it invests regularly. It offers an excellent technological and industrial fit with Structil, which would immediately benefit from the new environment offered by Hexcel to catalyze its development."
The operation should be completed in the second half of 2017, pending approval by the employee representative bodies of Structil and its parent company Safran Ceramics, and the approval of French authorities.
Safran is a leading international high-technology group with three core businesses: Aerospace, Defence and Security (ongoing divestiture of Security business). Operating worldwide, the Group has 66,500 employees (Security included) and generated sales of 15.8 billion euros in 2016 (excluding Security). Working independently or in partnership, Safran holds world or European leadership positions in its core markets. The Group invests heavily in Research & Development to meet the requirements of changing markets, including expenditures of 1.7 billion euros in 2016 (excluding Security expenditures). Safran is listed on Euronext Paris and is part of the CAC40 index, as well as the Euro Stoxx 50 European index.
Safran Ceramics is Safran's center of excellence in high-temperature composite materials. The company develops advanced ceramic technologies for Safran's products, covering all aspects from basic research to production.