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Sunday, November 08, 2009
Northrop To Sell TASC Consulting Arm For $1.65 Bln
By Michael Kitchen
MarketWatch Pulse
LOS ANGELES -- Northrop Grumman Corp. said Sunday it has signed an agreement to sell TASC Inc., its advisory-services business, for $1.65 billion in cash to an investor group led by General Atlantic LLC and affiliates of Kohlberg Kravis Roberts & Co. LP. The Los Angeles-based security and aerospace company said the deal, which it expects will close by year end, generate net after-tax cash proceeds of approximately $1.1 billion. It said it will use the funds to increase its share-repurchase program, "after which the transaction is expected to be neutral to Northrop Grumman's 2010 earnings per share from continuing operations."
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