Julian Moxon/PARIS
Snecma has strengthened its position in the engine and equipment industries after a surprise move to take control of Labinal and its Turboméca and Microturbo divisions, manufacturers of helicopter and missile powerplants respectively.
The all-French deal may see Turboméca folded into Snecma's engine business, losing its long-held independence, but sources say the shape of future structures "remain uncertain", with negotiations to be completed by mid-July.
The Snecma move came about after pressure was exerted on Labinal's majority owners, the Antiglio and Méton families - which have long been resistant to any takeover - by minority shareholders and the stock market.
Snecma took control of Labinal by purchasing Sopartech, which held 64.9% of its voting rights and 49.38% of its share capital, for Fr135 a share ($18.7), valuing Labinal at Fr7.5 billion. Snecma followed by using its voting position to agree the sale of Labinal's Sylea automotive business - amounting to a 52.9% stake - to auto equipment specialist Valeo.
By taking control of Turboméca and Microturbo, Snecma is in a stronger negotiating position should there be further merger activity. It is expected to offer other remaining shares to Labinal shareholders.
Meanwhile, sources close to Snecma "do not rule out" a move by Paris to privatise part or all of the company "within a couple of years" - something regarded as essential by Germany's MTU and the UK's Rolls-Royce if there is to be consolidation at European level.
Turboméca produces helicopter engines spanning the 370-2,235kW (500-3,000shp) power range, increasing market share to 24% from 15% in the late 1980s. The company employs 3,700 people at its Tarbes base, with sales of Fr3.16 billion last year, and is poised to grow its military business through the Tiger attack helicopter and NH90 transport helicopter programmes.
Most civil business is for Eurocopter powerplants, which is growing steadily. It has longstanding co-operation with Rolls-Royce, through the RTM322 (powering the EH101) and MTR390 (for the NH90) programmes. Microturbo makes small gas turbines, specialising in cruise missile engines.
Snecma also takes over Labinal's aeronautical cabling and brake equipment business.
Source: Flight International
