BAE Systems has now received the necessary regulatory approvals and will be executing steps in the coming days to complete the acquisition of Ball Aerospace from Ball Corporation.
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.
Further, 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.$4.8 Billion.
Ball Aerospace is a leading provider of spacecraft, mission payloads, and optical and antenna systems with decades of proven success underpinned by world class 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, and is well positioned in highly attractive markets, including military and civil space, C4ISR, and missiles and munitions.
The business is based in Colorado, with more than 5,200 employees, many of whom hold 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 our preliminary results on 21 February 2024 incorporating the acquisition.
