Hitachi Rail Limited entered into an agreement Ground Transportation Systems Business from Thales S.A. (ENXTPA:HO) for an enterprise value of €1.7 billion.
August 04, 2021
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Hitachi Rail Limited entered into an agreement Ground Transportation Systems Business from Thales S.A. (ENXTPA:HO) for an enterprise value of €1.7 billion on August 4, 2021. The consideration shall be payable in cash. The final purchase price will be determined after customary adjustments for net working capital and net debt. In financial year 2020, Ground Transportation Systems Business has reported revenues of €1.6 billion. The transaction is subject to obtaining regulatory approvals and antitrust clearances. Transaction is also subject to consultation with employee representatives of both Thales S.A. and Hitachi Rails and obtaining their approvals. The completion of the transaction will require the carve-out of the business in several countries. The transaction is expected to close in late financial year 2022, ending by March 31, 2023.
Deutsche Bank Aktiengesellschaft (XTRA:DBK) and Perella Weinberg Partners (NasdaqCM:PWP) acted as financial advisors to Hitachi Rail Limited while Clifford Chance LLP provided legal advice. Lazard Ltd (NYSE:LAZ) acted as financial advisor to Thales S.A. while BDGS Associés, BDGS Associés and August Debouzy provided legal advice. Marie-Françoise Bréchignac, Aurélie Goville, Johanna Federspiel, Guillaume le camus, Olivier Vasset, Jérémie Paubel of Baker & McKenzie LLP acted as legal advisor to the Thales S.A. (ENXTPA:HO).
Thales is one of the European leaders in manufacturing and marketing of electronic equipment and systems for the defense and security, aerospace, and transportation sectors. Net sales break down by product group as follows:
- defense and security systems (53.4%): C4I defense and security systems (control and monitoring systems, communication, protection, cyber-security, and other systems), defense mission systems, naval systems, electronic war systems, drones, air operation systems (air defense, air surveillance), ground defense systems and missiles;
- aerospace systems (28.4%): avionics equipment (cockpit, cabin multimedia, and simulation equipment), space systems (satellites, payloads, etc.);
- digital identification and security solutions (18.2%).
Besides, the group owns a 35% stake in Naval Group (manufacture of naval equipment for defense and nuclear energy sectors).
Net sales are distributed geographically as follows: France (29.5%), the United Kingdom (6.6%), Europe (24.8%), the United States and Canada (14%), Asia (9.4%), Near and Middle East (6%), Australia and New Zealand (4.4%) and other (5.3%).
Hitachi Rail Limited entered into an agreement Ground Transportation Systems Business from Thales S.A. (ENXTPA: HO) for an enterprise value of €1.7 billion.
THALES 
