- Kratos (NASDAQ:KTOS -3.7%) has closed the sale of the U.S. and U.K. operations for its Electronics Products Division (EPD) to U.K. firm Ultra Electronics Holdings.
- The company is receiving $260M in cash and up to $5M for incurred taxes, minus a $2M escrow and a working capital adjustment expected to total $7.6M.
- After also factoring federal/state taxes and transaction-related costs, net proceeds are expected to total $232.4M. Kratos plans to use the funds to repurchase up to $175M worth of its 7% secured notes. The company also states it has paid down the ~$41M that was outstanding on a $110M bank credit facility.
- Shares have followed equity markets lower. The S&P is down 2.7%, and the Nasdaq 2.5%.