Safran sells Morpho Detection business to Smiths Group

PARIS, April 21 (Reuters) - French aerospace and defence group Safran (LSE: 0IU8.L - news) said it agreed to sell its U.S (Other OTC: UBGXF - news) .-based Morpho Detection business and other detection-related activities to British engineering conglomerate Smiths Group (Other OTC: SMGKF - news) for an enterprise value of $710 million.

Morpho Detection will become part of Smiths Group's Detection division, which designs and manufactures sensors that detect and identify explosives, weapons, chemical agents and other contraband, Safran said in a statement on Thursday.

"The threat environment for people and critical infrastructure around the world is constantly evolving and becoming more complex and sophisticated," Smiths Group Chief Executive Andrew Reynolds Smith said.

"The response, to keep people safe and the world running, demands cutting-edge technology and cost-efficient solutions."

Partially state-owned Safran said the transaction would generate a capital gain before tax, adding that it was expected to close in early 2017. (Reporting by James Regan; Editing by Dominique Vidalon)