BAE Systems recently received the regulatory approvals needed to purchase Ball Aerospace from Ball Corporation for $5.5 billion, shuffling a leading provider of spacecraft, payloads, and optical and antenna to new ownership.
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,” Charles Woodburn, chief executive of BAE Systems, said. “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.”
The transaction will be treated as an asset purchase for federal taxes, and it will be funded through existing cash and new external debt. By purchasing the Colorado-based Ball Aerospace, BAE Systems will also gain access to its established customer relationships in the Intelligence Community, U.S. Department of Defense and civilian space agencies. It also brings with it more than 5,200 employees.
A plan to complete the acquisition is still in progress, but the newly acquired business will be redesignated Space & Mission Systems.