Regulatory Approval for Ball Aerospace acquisition

LONDON, UK: BAE Systems, a global leader in defence and aerospace, announced today that it has agreed to buy Ball Aerospace, a leading provider of mission critical space systems and defence technologies, for $5.55 billion in cash.

The deal, which is subject to customary closing adjustments, will strengthen BAE Systems’ world class multi-domain portfolio and enhance its growth prospects in the US market. Ball Aerospace has strong positions in military and civil space, C4ISR and missile and munition markets, and is aligned with the US Intelligence Community and Department of Defense’s highest priorities.

Ball Aerospace has a long and distinguished track record of innovation and product development, and has invested substantially in world class facilities and capabilities in the last five years to support growth. The acquisition will also increase BAE Systems’ US classified revenues, offerings and embedded customer relationships.

Charles Woodburn, Chief Executive of BAE Systems, said: “The proposed acquisition of Ball Aerospace is a unique opportunity to add a high quality, fast growing technology focused business with significant capabilities to our core business that is performing strongly and well positioned for sustained growth. It’s rare that a business of this quality, scale and complementary capabilities, with strong growth prospects and a close fit to our strategy, becomes available.”

He added: “The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending, strengthening our world class multi-domain portfolio and enhancing our value compounding model of top line growth, margin expansion and high cash generation.”

“We believe this proposed acquisition provides compelling value and an exciting future, underpinned by our companies’ shared culture of innovation and strong, mission-driven values. Our mission of We Protect Those Who Protect Us® resonates with the Ball Aerospace team, and our adjacent and augmented positions across the defence, intelligence, and scientific markets will strengthen our outlook and benefit BAE Systems, the Ball Aerospace business, and customers alike.”

The proposed stock transaction will be treated as an asset purchase for federal tax purposes, with an expected net present value tax benefit of $750 million making the underlying economic consideration for the business $4.8 billion.

The transaction is expected to close in the first half of 2024, subject to regulatory approvals and other customary closing conditions.

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