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Article: United States: Northrop Sale of TASC Unit Shows Buyout Firms Return.
- Article from:
- TendersInfo
- Article date:
- November 10, 2009
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Byline: babalu03
KKR & Co. and General Atlantic LLC agreed to pay $1.65 billion for a government-consulting unit that Northrop Grumman Corp. is selling to comply with new conflict-of-interest regulations.
The sale will generate about $1.1 billion in cash after taxes, which Northrop will use to repurchase shares, the Los Angeles-based company said yesterday in a statement.
The transaction represents a return of buyout firms to the acquisitions market after a two-year dearth of purchases during the credit crisis. The purchase gives the buyers an opportunity to benefit from U.S. defense spending, which will reach $680 billion in budget year 2010.