© airbus group Electronics Production | March 22, 2016
Airbus to sell defence electronics business to KKR
Airbus Group SE has reached agreement with investment firm KKR, to sell its defence electronics business based in Ulm, Germany.
This is a rather big step in Airbus' portfolio reorganisation – which the company announced back in September 2014. The transaction is expected to close in the first quarter of next year and is subject to customary closing conditions, including regulatory approvals and employee consultation. Bernhard Gerwert, Chief Executive Officer of 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.” KKR has valued the defence electronics business at an enterprise value of approximately EUR 1.1 billion. Airbus Group may maintain a minority stake to ensure a smooth and seamless transition for the business, its employees and partners. Johannes Huth, Member and Head of KKR Europe, Middle East and Africa, said: “We are delighted to have been chosen as the best partner for the defence electronics business. 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.” Defence Electronics includes around 4'000 employees worldwide, with annual revenues of around EUR 1 billion.