KKR €1.1 billion acquisition of Defence Electronics

Overview:

• Kohlberg Kravis Roberts & Co (KKR) acquired Airbus' Germany-based Defence Electronics business for €1.1 billion. 
• To assuage concerns of the German government - the German Ministry of Defence is the company's biggest single customer - Airbus will retain 25% of the business for up to three years from the deal closing.
• The US private equity firm beat of competition from rival fund Advent to secure the purchase. 
• Airbus' divestment of Defence Electronics forms part of a restructuring the company began in September 2014 in light of a decrease in defence spending in Europe. 
• The transaction's closing is subject to regulatory approval.
• Airbus expects the deal to close in the first quarter of 2017. 

Ben Naylor - Regional Editor