BAE
SYSTEMS PLC
14
February 2024
BAE
Systems secures regulatory approvals for acquisition of Ball
Aerospace
Further to the announcement of
17 August 2023, BAE Systems has now received the necessary
regulatory approvals and will be executing steps in the coming days
to complete the acquisition of Ball Aerospace from Ball
Corporation. The final transaction is expected to close at a
purchase price of $5.5 billion (approximately £4.4 billion),
which will be funded through existing cash and new external
debt. The transaction will be treated as an
asset purchase for federal tax purposes, with an expected net
present value tax benefit of c.$750m making the underlying economic
consideration for the business c.$4.8bn.
Ball Aerospace is a leading provider
of spacecraft, mission payloads, and optical and antenna systems
with decades of proven success underpinned by world class advanced
technologies. The business has trusted customer relationships in
the Intelligence Community, US Department of Defense, civilian
space agencies, and with major aerospace and defence primes, and is
well positioned in highly attractive markets, including military
and civil space, C4ISR, and missiles and munitions.
The business is based in Colorado, with more than
5,200 employees, many of whom hold US security
clearances.
BAE Systems and Ball Corporation
will be executing the plan to complete the acquisition in the
coming days. The newly acquired business
will be called Space & Mission Systems and will map within the
Electronic Systems reporting segment.
BAE Systems shall provide 2024 Group
guidance at our preliminary results on 21 February 2024
incorporating the acquisition.
Commenting on today's announcement,
Charles Woodburn, Chief Executive of BAE Systems, said:
"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.
"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."
- ENDS -
For further information please
contact:
Investors
Media Relations
Martin
Cooper
Kristina Anderson
Investor Relations
Director
Director, Media Relations
Telephone: +44 (0)1252
383455
Telephone: +44 (0)7540 628673
Email: investors@baesystems.com
Email: kristina.anderson@baesystems.com
Cautionary statement:
All statements other than statements
of historical fact included in this announcement including, without
limitation, those regarding the financial condition, results,
operations and businesses of BAE Systems and its strategy, plans
and objectives and the markets and economies in which it operates,
are forward-looking statements. Such forward-looking statements
which reflect management's assumptions made on the basis of
information available to it at this time, involve known and unknown
risks, uncertainties and other important factors which could cause
the actual results, performance or achievements of BAE Systems or
the markets and economies in which BAE Systems operates to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. BAE Systems plc and its directors accept no liability
to third parties in respect of any such forward-looking
statements.