French Company Buys Most of GE Homeland Protection Business

Airport security around the globe will depend more than ever on a French company, as GE announced it has agreed to sell 81 percent GE Security’s Homeland Protection business to Paris-based SAFRAN for $580 million.
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Airport security around the globe will depend more than ever on a French company, as GE announced it has agreed to sell 81 percent GE Security’s Homeland Protection business to Paris-based SAFRAN for $580 million.

The Homeland Protection business will become part of SAFRAN’s Defense Security division of Sagem Securite, led by Chairman and CEO Jean-Paul Jainsky. Dennis Cooke will continue as president and CEO of the Homeland Protection business and headquarters will remain in Newark, Calif.

“This is a great move for our Homeland Protection business,” said Cooke. “Our business has a strong leadership team, dedicated and talented employees, innovative technology, a large installed base and a strong brand. This move aligns Homeland Protection with a business that is committed to globalization and further investment in new detection technologies and new products for the Homeland Security space.”

The combined company will focus on identification solutions and detection offerings globally and will benefit from continued access to technology advancements from GE’s Global Research Center and GE Healthcare.

SAFRAN and GE have already been working together for more than 35 years to deliver aviation technology solutions. The new entity will feature SAFRAN’s ID management, plus Homeland Protection’s world-class aviation safety, checked baggage screening, military and critical infrastructure protection together with new growth platforms in chemical/biological hazard and radiation and nuclear detection.

“Following our 2008 acquisitions of SDU-Identification (a Dutch manufacturer of secure passports and ID documents) and Motorola’s biometrics business (Printrak brand), adding GE Homeland Protection will significantly bolster our Group’s third core business,” said Jean-Paul Herteman, CEO of SAFRAN. “This makes SAFRAN a pivotal player in the security market, a business that will generate 20 percent of the group’s total revenues in the medium term, with double-digit profit perspectives and reducing exposure to aerospace cycles.”

Combining Homeland Protection’s capabilities with SAFRAN’s portfolio will enable SAFRAN to become a leading global player in airport security solutions. Already a world leader in biometric identification solution, SAFRAN will now provide a differentiated, integrated offering to customers, from checked baggage screening to passenger identity and credentialing to check in.

The transaction has been approved by the boards of both companies, and is subject to regulatory approvals.

MORE INFO
GE Security www.gesecurity.com
SAFRAN www.safran-group.com

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