WASHINGTON — Airbus Group has agreed to sell its Defence Electronics unit to KKR, a New York-based investment firm, for $1.24 billion, the aerospace giant announced Friday.

Airbus declared its intention to reshape its Defence and Space division in 2014, and this divestiture is a result, said Bernhard Gerwert, the division's CEO, said in a prepared statement.

"Defence Electronics is a strong, profitable business with significant growth potential and we are convinced that KKR and the Defence Electronics management team and employees will continue to strongly develop the business going forward," he said.

Airbus Group may keep a minority stake to ensure a smooth and seamless transition for the business, its employees and partners, according to the release. Defence Electronics has 4,000 employees worldwide and annual revenues around $1.13 billion.

Johannes Huth, Member and Head of KKR Europe, Middle East and Africa, said, KKR is "delighted" to have been chosen as the best partner for the business.

"KKR will support the growth and development of the company with its financial resources, international network, long-standing expertise in the global industrial sector and its extensive experience building successful industrial companies in Germany, such as MTU Aero Engines, Demag Cranes and Kion," he said.

Email: aclevenger@defensenews.com

Twitter: @AndClev

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