Northrop Grumman [NOC] has completed the $1.7 billion sale of its former advisory services business, TASC, Inc., to an investor group led by General Atlantic LLC and Kohlberg Kravis Roberts & Co.
Northrop Grumman announced the sale of TASC last month to avoid organizational conflicts of interest with work the business does helping its government customers that also contract work out to other Northrop Grumman businesses.
The company said in November that it would use the $1.1 billion in after-tax proceeds from the sale to expand its existing share repurchase program. Purchasing additional shares of its own stock will allow Northrop Grumman to offset the loss of earnings from TASC so that the overall deal would be neutral to earnings per share this year and next.