BAE Systems announced this morning it has agreed to acquire the Ball Aerospace business from Ball Corp. for $5.55 billion.
"The proposed acquisition represents an exceptional opportunity to strengthen our portfolio with significant scale and high-end technology capabilities," a BAE statement reads. "Ball Aerospace will add more than $2 billion in annual revenues in the growing space domain, C4ISR and missile and munitions markets. The acquisition will provide our U.S. business with a position in some of the fastest growing segments of the defense market and further increases our alignment to enduring customer priorities embodied in the U.S. National Defense Strategy."
BAE Systems CEO Charles Woodburn said the proposed acquisition "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."
BAE said it expects to close the transaction "in the first half of 2024. The Agreement includes a termination fee of US$100 million payable by BAE Systems, Inc. to Ball Aerospace’s parent company in the event the transaction is terminated because certain required regulatory conditions are not met within the agreed timeframe."