UK military firm BAE agrees to buy US' Ball Aerospace for $5.55b
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Ball Aerospace is a firm that supplies spacecraft, mission payloads, optical systems, and antenna systems, and its clients include the Department of Defense and civilian space agencies.
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A sign for defense company BAE Systems in Warton, northwest England in an undated photo. (AFP)
On Thursday, UK military equipment maker BAE Systems announced its agreement to purchase US company Ball Aerospace from the Ball Corporation for about $5.55 billion, hoping to complete the acquisition in the first half of 2024, with an expected tax credit taking the "underlying economic consideration for the business" to $4.8 billion.
The deal is due to be funded by a mix of new external debt and existing cash resources, per BAE.
Ball Aerospace is a firm that supplies spacecraft, mission payloads, optical systems, and antenna systems, and its clients include the Department of Defense and civilian space agencies, with more than 5,200 employees of whom more than 60% hold US security clearances.
During a press release making the announcement, BAE said the deal is "well positioned to capture expected increases in demand for missiles and munitions", describing Ball Aerospace as a "space and defence technology leader" and a "highly complementary fit" with its own "portfolio and culture".
BAE Systems chief executive Charles Woodburn stated, "It's rare that a business of this quality, scale and complementary capabilities, with strong growth prospects and a close fit to our strategy, becomes available," adding, "The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending."
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Earlier this month, a record order book was announced by BAE, alongside a half-year jump in net profits of 57% given the increased spending in light of the war in Ukraine.
This information comes a mere day after a military-diplomatic source claims that the UK's Secret Intelligence Service, or MI6, prepared a sabotage unit of 100 Ukrainian fighters set to be sent to Africa to fend off Russia-Africa cooperation.
An Oxfam report disclosed some serious figures regarding the casualties in #Yemen due to the #US-#Saudi-led coalition, which has been regularly bombing civilian areas since 2015. pic.twitter.com/z793MpbzV5
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