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On Thursday, international defense manufacturer BAE Systems signed a $5.6 billion cash deal to acquire Ball Aerospace. BAE Systems is a renowned producer of combat aircraft, ships, vehicles, ammunition, and electronics, and even manufactures the Bradley Fighting Vehicle pictured in the image above. This significant acquisition reflects BAE Systems’ commitment to expanding their presence in rapidly growing segments of the defense market, while aligning with key U.S. National Defense and Intelligence strategies.
Aug. 17 (UPI) — Announced on Thursday, BAE Systems, a prominent defense, aerospace, and security company, has entered into an agreement to purchase Ball Aerospace.
The cash deal, valued at $5.6 billion, is expected to close within the first half of 2024, pending regulatory approvals.
“This high-impact acquisition will elevate our company’s position in the fastest growing areas of the defense market, while strengthening our alignment with the enduring priorities of our customers and the U.S. National Defense and Intelligence Strategies,” stated Tom Arseneault, CEO of BAE Systems.
Ball Corporation anticipates approximately $4.5 billion in net proceeds after taxes from the transaction. These proceeds, combined with the robust free cash flow generated from their packaging operations, will be utilized to reduce net debt.
“BAE Systems is well-positioned to invest in Ball Aerospace, taking the combined business to new heights. This will provide significant value to critical mission partners, offer customers more affordable solutions, and contribute to a safer world for all stakeholders. Today’s agreement marks a positive stride forward,” said Daniel W. Fisher, CEO of Ball Corporation.
BAE Systems excels in the design, manufacturing, and support of combat aircraft, ships, combat vehicles, ammunition, and advanced electronics, including cybersecurity capabilities.
Ball Aerospace is known for its expertise as both a spacecraft and payload developer, with a specialized understanding of instrument integration and end-to-end systems delivery.
“We believe that BAE Systems and Ball Aerospace share a culture of mission-driven innovation and operational excellence. We are eager to continue the historic legacy of Ball Aerospace while investing in its future,” added Arsenault.
BAE Systems anticipates that the acquisition of Ball Aerospace will provide a strong foundation for accelerating their space strategy.
While Ball Corporation sells its aerospace business, they will retain their global packaging operations.
BAE Systems’ esteemed clientele consists of the defense department, intelligence community, and civilian space market.
