Airbus completes divestment of Defence Electronics unit to KKR

Airbus has finalised the sale of its Germany-based Defence Electronics business to KKR, a leading global investment firm, 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 €1.1bn. Airbus has agreed to maintain a 25.1% 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, which will be renamed Hensoldt, is a global provider of missioncritical sensors, integrated systems and services for premium defence and security applications. Headquartered in Ottobrunn, Germany, it has around 4,000 employees worldwide, with annual revenues of around €1bn.