French aerospace firm Safran said it had agreed to buy the electrical power systems activities of Goodrich, for around EUR€310 million (USD$401 million) in cash.
The transaction is expected to close late in 2012 or early 2013. It includes the Goodrich division's 60 percent stake in Aerolec, a joint venture with Thales.
Aerolec supplies Airbus with the main electrical power generation equipment used aboard the A380 superjumbo airliner and A400M military transport plane.
"This acquisition marks a leap forward for Safran in electric power systems, particularly in electric power generation and primary and secondary distribution where it is taking the global no. 2 spot," a Paris-based trader said.
Safran said the Goodrich operations were expected to generate revenues of over USD$200 million in 2012, of which the aftermarket business should contribute half.
Safran was warned by activist investor The Children's Investment Fund Management last week to avoid making "value destructive" acquisitions outside the civil aerospace sector.