Northrop Grumman Is All-In on Bombers and Space After Recent Divestment
Northrop Grumman (NYSE: NOC) is parting ways with the bulk of its IT and services work in favor of focusing its attention squarely on its array of aerospace and space assets. The deal could crimp near-term earnings per share numbers, but makes sense from a long-term perspective.
On Dec. 7 Northrop announced a $3.4 billion deal to sell its federal IT and missions support services business to Peraton, a company owned by private equity firm Veritas Capital.
The sale carves out a $2.3 billion chunk of Northrop Grumman's $35 billion in annual sales, and the company intends to spend much of the $2.9 billion it expects to take in after taxes on share repurchases to help offset the earnings per share impact of the deal.
Source Fool.com
