£1.4bn deal agreed to buy Wolverhampton aerospace operation

Collins Aerospace's actuation and flight control operation, which makes parts for aircraft manufacturers around the world, is being bought by French group Safran.

The site at Stafford Road, Fordhouses is the headquarters for the high-tech actuation and flight control systems that are made for commercial and military aircraft and helicopters.

The business has around 1,500 employees in the West Midlands and 3,700 across all its facilities in Europe and Asia.

The Wolverhampton operation, which dates from 1966, was originally Simmonds Precision Products and then Goodrich Actuation Systems.

It is currently part of Collins Aerospace, which is owned by the US-based Raytheon Technologies group.

Aircraft, defence and space company Safran, which is based in Paris, says the acquisition will provide strategic benefits. Collins’ best-in-class hydraulic and mechanical actuation capabilities would combine with Safran’s current know-how in electrical actuation and electronics and position the group for future aircraft programmes.

Safran designs and makes aircraft and rocket engines and employs 81,000 worldwide.

The deal is subject to consultation with Collins employees and regulatory approvals.

Closure is expected to take place in the course of the second half of 2024.

Olivier Andries, chief executive of Safran, said: “The contemplated transaction represents a unique opportunity to develop our position in mission critical actuation and flight control functions. Our highly complementary product offerings would create a global leader in these segments with around US $1.8 billion of sales.

"The transaction would enable us to deliver a comprehensive offering to our clients and position us extremely well for next-generation platforms as the segments move toward increased electrification. The business is a perfect fit with both our product portfolio and our DNA with leading technologies, recurring aftermarket sales, and profitable growth.”

Wolverhampton North East MP Jane Stevenson said she thought it was good news for the city.

She has met Collins, which she described as a major city employer, to seek reassurance about the implications of the deal.

"The message I got is that it will be business as usual. Safran made a very attractive bid and the deal is expected to bring increased employment.

"It does seem like a positive move for the Stafford Road site. They will continue to recruit and carry on the fantastic work they do with apprentices," she stressed.

She said the actuation business was a profitable and high-skills business, which Safron believes will fit perfectly into its business model.

"I know this announcement will cause some concern, but I have been assured that the business will continue to produce world-leading products in Wolverhampton and there won't be any job losses," she added.

Collins has invested heavily in apprenticeships and recruited more than 70 apprentices and 40 graduates in Wolverhampton since 2018.