BAE Systems completes $5.5 billion acquisition of Ball Aerospace

BAE Systems has formally completed the acquisition of Ball Aerospace, the space and defence company, from Ball Corporation.

The transaction closed at a purchase price of $5.5 billion (approximately £4.4 billion), which has been funded through existing cash and new external debt, said the company.

Ball Aerospace will be called Space & Mission Systems and become a fourth operating sector of BAE Systems.

“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,” said Charles Woodburn, Chief Executive of BAE Systems.

“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.”

BAE announced earlier in the month regulatory approval was in place for the definitive stock purchase agreement, which was announced in August.

At the time, it described 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”.

Ball Aerospace has been headquartered in Boulder, Colorado, with more than 5,200 employees

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