BAE Systems to complete acquisition of Ball Aerospace
Above: ROMAN EWA - Nancy Grace Roman Space Telescope.
Courtesy BAE Systems / Ball Aerospace
The final transaction is expected to close at a purchase price of $5.5 billion (approximately £4.4 billion), which will be funded through existing cash and new external debt. The transaction will be treated as an asset purchase for federal tax purposes, with an expected net present value tax benefit of c.$750m making the underlying economic consideration for the business c.$4.8bn.
Ball Aerospace a provider of spacecraft, mission payloads and optical and antenna systems with decades of proven success underpinned by advanced technologies. The business has trusted customer relationships in the Intelligence Community, US Department of Defense, civilian space agencies and with major aerospace and defence primes. It is well positioned in markets such as military and civil space, C4ISR and missiles and munitions. Based in Colorado, it has over 5,200 employees, many with US security clearances.
BAE Systems and Ball Corporation will be executing the plan to complete the acquisition in the coming days. The newly acquired business will be called Space & Mission Systems and will map within the Electronic Systems reporting segment. BAE Systems shall provide 2024 Group guidance at its preliminary results on 21st February 2024 incorporating the acquisition.
Charles Woodburn, Chief Executive of BAE Systems, said: "In recent years, we’ve said that we would seek out opportunities to grow our portfolio in advanced technology areas that meet our customers’ most urgent needs and completing the acquisition of Ball Aerospace is an example of that strategy in action.
"We look forward to welcoming the employees of Ball Aerospace to BAE Systems, bringing one of industry’s most respected and capable businesses into the Group. The addition of this quality, fast-growing technology-focused business will significantly expand our presence in this increasingly critical space domain and further enhances our value compounding model of top line growth, margin expansion and high cash generation."
