BAE buys Ball for £4.4Bn

Homeland August 21, 2023

Ball Systems has announced its aerospace business has been bought by UK defence contractor BAE Systems.

The deal, worth some £4.4Bn sees the division of Ball that supplies parts to the James Webb telescope and US fighter jets, come into the BAE System Corporation.

Ball Aerospace is a leading provider of spacecraft, mission payloads, optical systems, and antenna systems with decades of proven success underpinned by world class advanced technologies. They have trusted customer relationships among the Intelligence Community, US Department of Defense, and civilian space agencies. The business has been a pioneer in its markets for many decades and is organised into four main divisions: National Defense, Tactical Solutions, Civil Space, and Advanced Technology and Information Solutions.

The business came from humble beginning, the company has become the world’s leading supplier of rolled aluminium for food and beverages.

Ball Aerospace was set up after the Second World War, when the business explored other revenues as refrigeration became more popular.

The business is well positioned in highly attractive markets, military and civil space, C4ISR, and missile and munitions. The space market exposure extends across positions in defence, intelligence, and scientific missions. The Tactical Solutions business is well positioned to capture expected increases in demand for missiles and munitions.

Headquartered in Colorado, with more than 5,200 employees, of whom over 60% hold US security clearances, BAE has said it will take over all these contracts allowing them to work on sensitive US military projects.

Daniel W. Fisher, chairman and chief executive officer, Ball Corporation said: “The complementary cultural fit of Ball Aerospace and BAE Systems and their combined position as a pure play aerospace and technologies company will leverage Ball’s recent investments in talent and facilities located across the country and centered in Boulder, Broomfield and Westminster, Colorado, to provide a multi-dimensional platform for vital national defense, intelligence, and science hardware, software, and space-based assets. We thank the entire Ball Aerospace team for their hard work and celebrate their commitment to continue to deliver on critical missions. BAE Systems is well-positioned to invest in Ball Aerospace to elevate the combined business to new heights, generate significant value to critical mission partners, offer customers more affordable solutions and enable a safer world for all stakeholders benefitting from today’s agreement.”

BAE Systems said the acquisition of Ball Aerospace is a unique opportunity to strengthen its world class multi-domain portfolio.

Commenting on the announcement, Charles Woodburn, Chief Executive of BAE Systems, said:

“The proposed acquisition of Ball Aerospace is a unique opportunity to add a high quality, fast growing technology focused business with significant capabilities to our core business that is performing strongly and well positioned for sustained growth. 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.

“The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending, strengthening our world class multi-domain portfolio and enhancing our value compounding model of top line growth, margin expansion and high cash generation.

“We couldn’t be more pleased to have reached this agreement and we look forward to welcoming the employees of Ball Aerospace to BAE Systems as we work together to support our customers and create value for shareholders.”

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