International defense manufacturer BAE Systems Thursday signed a $5.6 billion cash deal to buy Ball Aerospace. BAE makes combat aircraft, ships, vehicles, ammunition and electronics. BAE’s Bradley Fighting Vehicle pictured. Photo courtesy of BAE Systems
Aug. 17 (UPI) — International defense, aerospace and security company BAE Systems announced a deal Thursday to acquire Ball Aerospace.
Ball Corporation said the $5.6 billion cash deal is projected to close in the first half of 2024, subject to regulatory approvals.
“This marquee acquisition would advance our company’s position in some of the fastest growing segments of the defense market and further increase our alignment with enduring customer priorities in both the U.S. National Defense Strategy and U.S. Intelligence Strategy,” BAE CEO Tom Arseneault said in a statement.
According to Ball Corporation, the company will net roughly $4.5 billion after taxes from this transaction and will use the proceeds together with “robust free cash flow” generated from the company’s packaging operations will be used to reduce net debt.
“BAE Systems is well-positioned to invest in Ball Aerospace to elevate the combined business to new heights, generate significant value to critical mission partners, offer customers more affordable solutions and enable a safer world for all stakeholders benefitting from today’s agreement,” said Ball Corporation CEO Daniel W. Fisher in a statement.
BAE Systems design, make and support combat aircraft, ships, combat vehicles, ammunition and advanced electronics and cybersecurity capabilities.
Ball Aerospace describes itself as both a spacecraft and payload developer with “a unique understanding of instrument integration and experience delivering end-to-end systems.”
“We believe BAE Systems and Ball Aerospace share a culture of mission-driven innovation and operational excellence. We look forward to sustaining the historic legacy of Ball Aerospace and investing in its future,” Arsenault said.
BAE Systems said the acquisition of Ball Aerospace will provide a robust platform for accelerating BAE’s space strategy.
Ball Corporation is selling its aerospace business but will retain its global packaging business.
BAE Systems customers include the defense department, intelligence community and civilian space market.