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KKR weighing disposal of Hensoldt: Reuters
Posted on Friday, 06 September 2019 13:46
Private equity firm KKR is planning a sale or stock market flotation of German defence supplier Hensoldt that could fetch EUR 2.00 billion, people with knowledge of the matter told Reuters.

According to the sources, the buyout group is likely to hire an advisor soon, with bankers suggesting a listing of between 20.0 and 30.0 per cent or a disposal would be the best options.

Should an initial public offering be the chosen outcome, it would be worth between EUR 400.00 million and EUR 600.00 million based on the EUR 2.00 billion valuation given by the news provider’s insiders.

KKR has owned Hensoldt since December 2017, after paying EUR 1.10 billion for the defence electronics operations of Airbus.

It was later renamed under its current moniker and now provides military sensors, electronic warfare equipment, avionics and optronics.

According to its website, the potential target has a workforce of 4,400 employees and generates annual revenue of EUR 1.00 billion per year.

Hensoldt is likely to attract domestic players in the defence sector, as well as private equity buyers, if a sale becomes the preferred option, the insiders told Reuters.

The group also supplies identification systems for combat jets and night vision devices and radars for civil air traffic control.

Hensoldt believes it will double revenues by 2022 due to an expected increase in European military spending.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 1,249 deals targeting navigational, measuring, electromedical and control instruments manufacturing companies announced worldwide in 2019 so far.

In the largest of these, Ingersoll Rand picked up US-based Precision Flow Systems for USD 1.45 billion.

Fortive, an electrical and electronic medical equipment manufacturer, raised USD 1.44 billion through a convertible senior notes offering, in the second-biggest deal.

Deals targeting Katama, Corindus Vascular Robotics, TomTom Telematics and PerkinElmer, among others, have also been announced in the year so far.

© Zephus Ltd