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© airbus (for illustration purposes only) Business | March 02, 2017

Airbus completes divestment of its Defence Electronics unit

Airbus has finalised the sale of its Germany-based Defence Electronics business to KKR, following the receipt of regulatory and other approvals, including from the German government.
The France-based portion of the business will be transferred to KKR once the carve-out of the French entity in Elancourt, near Paris, is completed. The closing of this part of the transaction is subject to regulatory approval from the French government.

KKR acquires the business for an enterprise value of approximately EUR 1.1 billion. Airbus has agreed to maintain a 25.1 percent minority stake for a limited number of years post-closing until the full separation of the sites. This measure will facilitate a smooth transition for employees and business stakeholders.

The Defence Electronics activity will be renamed Hensoldt. Headquartered in Ottobrunn, Germany, it has around 4'000 employees worldwide, with annual revenues of around EUR 1 billion.

“We are pleased to finalise this transaction, which represents another major step forward in the strategic rationalisation of Airbus’ defence activities,” said Dirk Hoke, Chief Executive Officer of Airbus Defence and Space. “After streamlining our portfolio we are now well positioned with a clear focus on smarter products, more service-based offerings and accelerating digital innovation.”

Johannes Huth, Member and Head of KKR Europe, Middle East and Africa, said: “KKR will support the growth and development of Hensoldt into a leading European defence company with its financial resources and its extensive experience building successful industrial companies, such as MTU Aero Engines, Demag Cranes and Kion.”

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May 24 2017 9:54 PM V8.2.6-2