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Sources say Northrop Grumman (NOC) will sell its TASC consulting unit to a pair of...

Sources say Northrop Grumman (NOC) will sell its TASC consulting unit to a pair of private-equity firms - KKR and General Atlantic - for $1.65B. TASC unit provides engineering and consulting services to the U.S. military and state governments. Welcome home LBOs. Update at 4:25: Confirmed. Northrop expects the sale to generate net cash proceeds of $1.1B, which it will use to repurchase shares.
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  • tripleblack
    , contributor
    Comments (13589) | Send Message
     
    I wonder if they will not look back on this move in a few months and regret pulling the trigger?

     

    Rather than look at the contracts leaving with the sold units, I am tempted to look for the contracts NOC is seeking that need seed money...

     

    Their stock is selling at about the same level it enjoyed last year this time. I can see it reacting upward to $60 as a result of this move, but I do not see this getting them back to the $80 range where they hung out before the "troubles" last November.

     

    Are they that confidant about netting lots of new business from the Obama DOD?
    8 Nov 2009, 04:38 PM Reply Like
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