New York City-basedÂ private equityÂ firm Kohlberg Kravis Roberts & Co. L.P. (NYSE: KKR) has agreed to acquire theÂ defense electronics business of global aerospace and defense contractorÂ Airbus GroupÂ 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 theÂ transitionÂ ofÂ its partners and employees to new ownership.
TheÂ defense electronics business generated approximately $1 billion inÂ 2015Â and Airbus’Â divestiture of the unit is part itsÂ strategy to reorganize theÂ companyâs defense and space divisionÂ portfolio.
Johannes Huth, head of Europe, Middle East and Africa for KKR, said the company will applyÂ its international network, financial resources and experience in the global industrial sectorÂ to support the defense electronics businessâ 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.-basedÂ private equity firm General AtlanticÂ and KKR collectivelyÂ own 51 percent of the stock in Chantilly, Va.-based government services contractor Engility Holdings (NYSE: EGL), which closed its merger withÂ TASCÂ in February 2015.
General Atlantic and KKR purchased TASC from former owners Northrop Grumman (NYSE: NOC) in 2009Â for $1.65 billion.