Boeing, Safran form auxiliary power unit JV
Boeing and Safran have agreed to form a joint venture to design, build and service auxiliary power units (APUs). The 50/50 JV will be based in the U.S.
Boeing and Safran have agreed to form a joint venture to design, build and service auxiliary power units (APUs).
Both companies will have a 50% stake in the partnership, which will be based in the U.S. 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 supplies a wide range of components to Boeing commercial and defence programmes, 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 are already partners in MATIS (Morocco Aero-Technical Interconnect Systems), a joint venture in Morocco producing wiring products for several airframe and engine companies. The company produces more than 110,000 cables annually and has a turnover of MAD662m (around €59m).
Safran CEO Philippe Petitcolin said the partnership would have no impact on the company's 2018 guidance and its plan to return €2.3bn cash to shareholders over 18 to 24 months.