BAE Systems Finalizes $5.5B Purchase of Ball Aerospace

BAE Systems has officially finalized the acquisition of Ball Aerospace, a prominent space and defense company, from Ball Corporation. The transaction was successfully concluded at a purchase price of $5.5 billion (approximately £4.4 billion), with the funding sourced from existing cash reserves and new external debt, as confirmed by the company.

Following the acquisition, Ball Aerospace will be rebranded as Space & Mission Systems, marking its integration as the fourth operating sector of BAE Systems. Charles Woodburn, the Chief Executive of BAE Systems, expressed, "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."

Woodburn further emphasized the strategic significance of the acquisition, stating, "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."

Earlier, BAE Systems had announced the regulatory approval for the definitive stock purchase agreement, which was initially disclosed in August. The company highlighted the Ball Aerospace portfolio as "highly complementary and offers a number of adjacencies to our US-based business, with particular opportunities to advance a number of franchise positions across multiple Electronic Systems businesses."

Headquartered in Boulder, Colorado, Ball Aerospace boasts a workforce of over 5,200 employees. This acquisition aligns with BAE Systems' strategic vision to expand its technological capabilities and strengthen its position in the space and defense sectors, enhancing its ability to cater to evolving customer demands and industry trends.