GE Security to sell unit to SAFRAN for $580 million

27 April 2009

GE has agreed to sell a majority stake in GE Security's homeland protection business to airport security firm SAFRAN for $580 million. GE said it has signed a definitive agreement with SAFRAN, under which the latter will acquire 81 per cent of GE Security's Homeland Protection.

Upon successful closure of the deal, SAFRAN will have majority interest in GE Security's homeland protection business with 81 per cent with GE holding 19 per cent. The transaction has been approved by the boards of both companies, and is subject to customary regulatory approvals, GE said in a release.

GE's homeland protection business, based in Newark, CA, will become part of SAFRAN's defence security division, which is currently owned by  Sagem Securite, led by chairman and CEO Jean-Paul Jainsky.

Dennis Cooke, will continue as president & CEO, for the GE Security Homeland Protection business, the release said.

''This is a great move for our homeland protection business,'' said Dennis Cooke, president and CEO of GE Security Homeland Protection. ''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 globalisation and further investment in new detection technologies and new products for the Homeland Security space,'' he added.

The combined company will focus on providing identification and detection services globally and will draw on technology advancements at GE's Global Research Center and GE Healthcare, the release said.