Safran Agrees to Sell In-Flight Entertainment Division to Kingswood Capital Management

French aerospace giant Safran has announced a definitive agreement to sell its in-flight entertainment and connectivity (IFEC) division, Safran Passenger Innovations (SPI), to Kingswood Capital Management, LP. The transaction, announced on December 10, 2025, marks a significant shift in Safran’s portfolio strategy as it continues to divest non-core assets acquired during its purchase of Zodiac Aerospace.

According to the official announcement, the sale is expected to close by the end of the first quarter of 2026, subject to customary regulatory approvals. While the financial terms of the deal were not publicly disclosed, Safran confirmed that SPI generates approximately $460 million in annual revenue.

Transaction Overview and Strategic Rationale

The agreement transfers ownership of SPI, a California-based leader in in-flight entertainment systems, to Kingswood Capital Management, a Los Angeles-based private equity firm. Kingswood specializes in corporate carve-outs and operational transitions, making this acquisition a strategic fit for their portfolio.

Safran’s Divestment Strategy

For Safran, this move represents a continuation of its strategy to streamline operations and focus on its core competencies in propulsion and Commercial-Aircraft equipment. SPI, formerly known as Zodiac Inflight Innovations, was part of the Zodiac Aerospace acquisition in 2018. Since that merger, Safran has systematically reviewed its holdings to identify assets that operate outside its primary industrial focus.

In the company’s press statement, Safran indicated that the sale allows the group to concentrate resources on its strategic priorities while placing SPI under ownership that is specifically dedicated to growing the business as a standalone entity.

Kingswood’s Aerospace Expansion

Kingswood Capital Management described the acquisition as its “second aerospace and defense investment,” signaling a growing interest in the sector. The firm plans to leverage its capital and operational expertise to accelerate SPI’s product development and market expansion.

“We look forward to partnering with the SPI management team to support the company’s next phase of growth and innovation as a standalone business.”

, Statement attributed to Kingswood Capital Management

Impact on Operations and Leadership

A critical component of the agreement is the retention of SPI’s current leadership and workforce. The division employs approximately 740 people, primarily located at its headquarters in Brea, California, and its operations center in Wessling, Germany.

According to the release, CEO Matt Smith and the existing management team will remain in place following the acquisition. This continuity is intended to ensure stability for SPI’s Airlines customers, which include major global carriers such as Lufthansa, ANA, Etihad, and China Southern.

The RAVE Product Line

SPI is best known for its RAVE (Reliable, Affordable, and Very Easy) product line. The RAVE system includes seatback in-flight entertainment screens and connectivity hardware that supports various satellite networks. As a standalone company under Kingswood, SPI aims to compete more agilely in the IFEC market against rivals like Panasonic Avionics and Thales InFlyt Experience.

AirPro News Analysis

The sale of Safran Passenger Innovations highlights a broader trend in the aerospace supply chain: the “unwinding” of massive conglomerates into more specialized entities. When Safran acquired Zodiac Aerospace in 2018, it absorbed a vast array of cabin interior businesses. While some, like seats, integrated well, the high-tech, consumer-facing nature of in-flight entertainment (IFE) often requires a different investment cycle and agility than engine manufacturing.

By moving to private equity ownership, SPI may gain the flexibility to pivot faster in a post-pandemic market where passengers demand 4K screens and high-speed Wi-Fi. For Kingswood, the challenge will be managing a tech-heavy portfolio company in a capital-intensive industry, but the retention of the original leadership team suggests a strategy of stability rather than radical restructuring.

Frequently Asked Questions

When will the transaction be finalized?
The deal is expected to close by the end of Q1 2026, pending regulatory approvals.

Will the leadership team change?
No. CEO Matt Smith and the current leadership team will continue to lead the company.

What is the revenue of the division being sold?
Safran Passenger Innovations generates approximately $460 million in annual revenue.

Sources

• Safran Group Press Release