KKR poised to take over Northrop Grumman advisory unit

Private equity firm Kohlberg Kravis Roberts & Co (KKR) is poised to take over Northrop Grumman's TASC government advisory services unit for more than USD1 billion, sources familiar with negotiations informed Jane's.

Previous reports have identified both KKR and another private equity company General Atlantic to be in the running for the Northrop Grumman business, but KKR "seems to be the winner", said the figure, adding that an announcement of the purchase is "imminent".

"Everyone on the street has shown an interest," the source added, "because there are big deals out there where businesses are looking to deploy capital."

KKR had not commented at the time of publication.

Furthermore, expectations were that the value of the sale would be below USD1 billion, "but it's above USD1 billion", said the figure. Northrop Grumman defence contractor is understood to have hired investment bank Goldman Sachs to assist with the deal.