Airbus to sell Defence Electronics
Airbus Group has reached an agreement for the sale of its Defence Electronics business to KKR for around $1.23 billion, the company announced on 18 March. Subject to customary closing conditions, the transaction is expected to close in the first quarter of 2017.
The sale is a key part of the portfolio reorganisation announced by the Airbus Defence and Space division in September 2014. The company is likely to retain a minority stake in the business to ensure smooth transition for the business, its partners and employees.
The Defence Electronics business develops integrated systems, mission-critical sensors, electronic warfare, avionics and optronics products and related services for security and defence applications and is based in Ulm, Germany.
Bernhard Gerwert, chief executive officer, Airbus Defence and Space, said: ‘This is an excellent outcome for our Orlando process which aimed at repositioning Defence Electronics for the future with an excellent outcome for all stakeholders. Defence Electronics is a strong, profitable business with significant growth potential and we are convinced that KKR and the Defence Electronics management team and employees will continue to strongly develop the business going forward.’
Johannes Huth, member and head, KKR Europe, Middle East and Africa, said: ‘KKR will support the growth and development of the company with its financial resources, international network, long-standing expertise in the global industrial sector and its extensive experience building successful industrial companies in Germany, such as MTU Aero Engines, Demag Cranes and Kion.’
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