Safran, an international high technology group focused on aerospace propulsion, aircraft equipment and defence security, has acquired an 81 per cent stake in GE Homeland Protection, a major supplier of baggage screening systems to airports, for $580 million 

Safran, an international high technology group focused on aerospace propulsion, aircraft equipment and defence security, has acquired an 81 per cent stake in GE Homeland Protection, a wholly owned affiliate of General Electric and a major supplier of baggage screening systems to airports, for $580 million (£398 million).

The deal propels Sagem Security, a wholly owned subsidiary of Safran, to the number one slot in global airport security services while General Electric retains a 19 per cent interest and a seat on the Board.

The deal brings leading-edge defence security technology under one roof and boosts Safran’s presence in the explosives and narcotics detection market, which is worth an estimated $2.4 billion.

GE Homeland Protection has the largest worldwide installed base of baggage screening machines. The company has 780 employees located in the US, Europe and Asia, and posted sales of some $260 million in 2008

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