BAE Systems Agrees to Buy Ball's Aerospace Unit for $5.55 Billion
August 17 2023 - 1:52AM
Dow Jones News
By Joe Hoppe
BAE Systems said Thursday that it has agreed to buy Ball Corp.'s
aerospace business for $5.55 billion in cash.
The U.K. defense-and-aerospace group said an expected net
present value tax benefit of around $750 million would make the
underlying economic consideration for the business around $4.8
billion. BAE is targeting closing the deal in the first half of
2024, subject to customary regulatory approvals and conditions.
The company said the acquisition of Colorado-headquartered Ball
Aerospace, which provides spacecraft, mission payloads, optical
systems, and antenna systems, is a unique opportunity to strengthen
its portfolio, as it has high revenue visibility and a strong
growth outlook.
Ball Aerospace is expected to deliver revenue of around $2.2
billion and adjusted earnings before interest, taxes, depreciation
and amortization of about $310 million in 2023, BAE said. It
further has strong growth potential with an expected revenue
compound annual growth rate of around 10% over the next five years,
and growth thereafter.
The proposed acquisition will be funded by a combination of new
external debt and existing cash resources.
Ball, a supplier of beer cans, had said in mid-June it was
considering a potential sale of the aerospace business.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
August 17, 2023 02:37 ET (06:37 GMT)
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