LONDON — BAE Systems is moving to buy leading U.S. space and defense supplier Ball Aerospace, marking the Britain-based company’s biggest-ever acquisition.
The $5.55 billion deal will boost BAE’s position across a range of activities, notably the space sector, where Ball is a top-ranked supplier of spacecraft, mission payloads and other systems. The space and military portfolio makes up 70% of Ball’s business.
BAE boss Charles Woodburn described the acquisition as a “rare opportunity” to acquire a business of such scale and quality.
“The strategic and financial rationale is compelling as we continue to focus on areas of high-priority defense and intelligence spending,” the CEO said in a statement.
BAE Systems ranked seventh in the recently published Defense News Top 100 annual ranking of global defense companies, with revenue in the defense sector topping $25 billion in 2022. Ball Corporation booked defense-related revenue of $1.7 billion during that year, putting the company on rank 54, up from 61 in last year’s list.
The business BAE is buying is based in Colorado, employs 5200 people and has an annual turnover of $2.2 billion.
It’s best known for its space-related activities but also has a position as a systems supplier in the fields of communications, intelligence, missiles and munitions, among others.
Subject to regulatory approval, BAE expects to complete the deal in the first half of 2024.
Author: Andrew Chuter
Source: DefenseNews
