New York City-based private equity firm Kohlberg Kravis Roberts & Co. L.P. (NYSE: KKR) has agreed to acquire the defense electronics business of global aerospace and defense contractor Airbus Group for approximately $1.24 billion.Airbus said Friday the transaction is scheduled to close in the first quarter of 2017 and that it may control a minority stake in the business to facilitate the transition of its partners and employees to new ownership.
The defense electronics business generated approximately $1 billion in 2015 and Airbus’ divestiture of the unit is part its strategy to reorganize the company’s defense and space division portfolio.
Johannes Huth, head of Europe, Middle East and Africa for KKR, said the company will apply its international network, financial resources and experience in the global industrial sector to support the defense electronics business’ development effort.
The Ulm, Germany-based defense electronics business supplies electronic warfare, optronics, avionics and military sensors to defense and security markets.
KKR manages private equity, hedge funds, credit strategies, infrastructure, energy and real estate assets.
Greenwich, Conn.-based private equity firm General Atlantic and KKR collectively own 51 percent of the stock in Chantilly, Va.-based government services contractor Engility Holdings (NYSE: EGL), which closed its merger with TASC in February 2015.
General Atlantic and KKR purchased TASC from former owners Northrop Grumman (NYSE: NOC) in 2009Â for $1.65 billion.
