Global investment firm Kohlberg Kravis Roberts & Co. (NYSE: KKR) has concluded its approximately $1.2 billion purchase of the defense electronics business ofÂ Airbus Group.
France-based Airbus first announced the transactionÂ in March 2016Â as part of the company’s defense and space portfolio reorganization.
Airbus saidÂ Tuesday it will maintain a 25.1 percent minority stake in the defense electronics business until the full separation of the unit’sÂ sites to ensureÂ a seamless transition for employees andÂ stakeholders.
The Ottobrunn, Germany-based business currently employsÂ 4,000 employees and offers sensors, integrated systems and support services for defense and security applications.
Johannes Huth, member and head of KKR’s Europe, Middle East and Africa business, said the private-equity firm aimsÂ toÂ grow the acquired business into an independent European defense company that will be calledÂ Hensoldt.
Dirk Hoke, CEOÂ of Airbus’ defense and space segment, said the organizationÂ now plans toÂ concentrate on “smarter” products and service-based offerings as well as digital innovation programs.