Story ID: 
Airbus Concludes Sale of Defense Electronics Business
By: Chris Pocock
Caption: American buyout specialist KKR paid €1.1 billion for the mostly Germany-based company, now renamed Hensoldt.
Word Count: 333
Airbus has offloaded most of its Electronics and Border Security (EBS) business, two-and-a-half years after seeking a buyer. American investment specialist KKR paid approximately €1.1 billion for the business, which has a turnover of some €1 billion; employs 4,000 people who provide defense sensors, systems and services; and is mainly based in Germany. It will be renamed Hensoldt, after the nineteenth-century German pioneer of optics.

Airbus confirmed that it is retaining a 25.1 percent minority stake “for a limited number of years” until the full separation of the sites. Airbus has not yet gained regulatory approval from the French government for the sale of he French part of EBS, based at Elancourt near Paris. Airbus said that by retaining the minority stake will allow for “a smooth transition for employees and business stakeholders.” It confirmed to AIN its previous decision to retain responsibility for problematic border security contracts in Qatar, Romania and Saudi Arabia that EBS had concluded.

“We are pleased to finalize this transaction, which represents another major step forward in the strategic rationalization of Airbus’s defense activities,” said Dirk Hoke, chief executive officer of Airbus Defence and Space. innovation. Johannes Huth, head of KKR Europe, Middle East and Africa, said: “KKR will support the growth and development of Hensoldt into a leading European defense company with its financial resources and its extensive experience in building successful industrial companies, such as MTU Aero Engines, Demag Cranes and Kion.”

Hensoldt will be headquartered in Taufkirchen near Munich and led by chief executive officer Thomas Mueller. Its three main product lines are optronics; radar/IFF/datalinks; and electronic warfare/situational awareness systems, for  air, sea and land applications. This includes the protection of critical infrastructure, air defense, airborne self-protection, vehicle and convoy protection, signal intelligence and datalinks, as well as night vision, thermal imaging, laser rangefinding and optronic targeting. The company has equipment onboard the Eurofighter, F-16, Gripen and Rafale combat aircraft, the A400M airlifter and various helicopters.