(Reuters) -Private equity giant KKR & Co will buy S&P Global’s engineering solutions business for $975 million, the financial services provider said on Tuesday.
The move comes months after S&P Global said it would sell the unit, which serves more than 6,000 customers in the aerospace, defense, energy and architecture industries, among others.
“The divestiture of Engineering Solutions to KKR allows us to further focus on driving growth in our core businesses,” S&P Global Chief Executive Officer Douglas Peterson said.
Private equity firms, with billions of dollars of cash and a mandate to invest, have offered some respite in an environment that is still tough for dealmaking.
Shares of S&P Global were up marginally in afternoon trade. Last year, they plunged 29% as fears of a recession loomed and economic conditions worsened.
S&P Global expects proceeds of $750 million after tax, which the company said will be used to fund share buybacks.
KKR’s financing would come from its North America Fund XIII, which raised $19 billion last year.
(Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri)
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Source: US News
