BAE Systems snaps up Ball Corp’s aerospace arm for about $5.55 billion
2023.08.17 02:49
© Reuters. FILE PHOTO: People gather at the BAE Systems’ booth during the Association of the United States Army (AUSA) Global Force Symposium & Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo
(Reuters) -British defence group BAE Systems (OTC:) said on Thursday it agreed to buy Ball Corp (NYSE:)’s aerospace business for about $5.55 billion in cash.
BAE said it expected the deal to add to its earnings per share and margins in the first year post completion.
Reuters had reported in July that private equity firms Blackstone (NYSE:) Inc and Veritas Capital Fund Management were competing against defence companies such as BAE, General Dynamics Corp (NYSE:) and Textron (NYSE:) to buy the business.
Ball Corp, which makes beer cans, said it would use the proceeds to trim its $9.7 billion debt pile, return money to shareholders and speed up organic growth across its global packaging operations.
“The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending,” BAE Chief Executive Charles Woodburn said in a statement.
The aerospace business accounted for 13% of Ball’s consolidated net sales in 2022.
