BAE Systems has completed its acquisition of Ball Aerospace, with the move further strengthening its US business presence.
Completed on 16 February, the proposed purchase of the business from Ball Corporation had been announced in mid-August 2023, pending regulatory approvals.
Valuing the transaction at almost $4.8 billion, following a federal tax benefit of around $750 million, BAE says it “has been funded through existing cash and new external debt”.
Headquartered in Colorado and with around 5,200 employees, Ball Aerospace reported revenue of just under $2 billion in 2022. That performance placed it 41st in FlightGlobal’s annual Aerospace Top 100 review, while BAE was ranked 11th, with annual revenue of almost $13.8 billion.
The company produces equipment including “spacecraft, mission payloads, and optical and antenna systems” for customers including the US Department of Defense.
Following its incorporation, Ball Aerospace’s activities will be rebranded Space & Mission Systems, and report into BAE Systems Inc’s Electronic Systems unit.
“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,” says BAE chief executive Charles Woodburn.
