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Westinghouse sells defence business

Wednesday 03 January 1996 19:02 EST
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Westinghouse Electric Corporation has agreed to sell its defence electronics business to Northrop Grumman in a deal worth $3.6bn (pounds 2.5bn). The company said that the transaction would allow it to cover more than 65 per cent of the $5.4bn it borrowed to pay for CBS. In December, Westinghouse raised $565m with the sale of Knoll Group, which makes office furniture.

The deal was welcomed on Wall Street. Northrop will pay Westinghouse $3bn cash for the defence electronics division, whose products include systems for command, control and electronic warfare. As a result, 45 per cent of Westinghouse sales will come from broadcast-related activities.

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