CFI advised Safran on its acquisition of Aerospace Propulsion Products from TNO Companies

Amsterdam – CFI acted as the exclusive corporate finance advisors to Safran on the acquisition of Aerospace Propulsion Products from TNO Companies.

Herakles, a Safran company, acquires 70% of Aerospace Propulsion Products (APP), a company held by TNO Companies.

Safran is a leading international high-technology group with three core businesses: Aerospace (propulsion and equipment), Defence and Security. Operating worldwide, and headquartered in Paris, the Group has 66,300 employees and generated sales of 15.4 billion euros in 2014.

Herakles designs, develops, produces and sells solid rocket motors, energetic materials and equipment, and thermostructural and organic composite materials for the defense, aerospace, automotive and manufacturing industries. Herakles provides products and services for a number of applications, including strategic and tactical missiles, launch vehicles, civil and military aircraft, automotive safety systems and tooling for manufacturers.

APP is the European leader in igniters for rocket engines. The company develops and produces igniters and gas generators for aerospace and industrial applications.

TNO Companies focuses on bringing the pioneering scientific knowledge developed by the Netherlands Organization for Applied Scientific Research TNO to the market. This is managed by TNO Companies by privatization and venturing with both financial and commercial players.

This transaction reflects the advantages of the successful partnership between APP and Herakles, which will combine their respective areas of expertise in pyrotechnic devices. Furthermore, it will allow both to play a larger role in the European Space Agency programs, while developing new competencies and business sectors. Herakles will ensure the continued growth of APP’s business in other sectors, including gas generation systems for industrial security.

CFI Netherlands together with its M&A colleagues from CFI France entertain good contacts with Safran on external growth opportunities for the company. CFI Netherlands and CFI France introduced the APP opportunity to Safran, approached the owner of APP on behalf of Safran, and initiated exclusive discussions and negotiations that ultimately resulted in a succesful transaction announced in May 2014.