If completed, the transaction would mark the biggest deal yet in the company’s history.
| BAE Systems agreed to buy aluminium packaging giant Ball’s aerospace division for $US5.6 billion as the UK defence company seeks to expand its missile, space and munition products at a time of heightened weapons spending by governments.said it entered into a definitive agreement to purchase the unit, which manufactures instruments and sensors for everything from space travel to weather forecasting, according to a regulatory filing on Thursday.
BAE’s pursuit of Ball’s aerospace unit comes as growing security threats across the globe spur a dealmaking rush in the defence sector that is defying the broader drop off in mergers and acquisitions activity. Ball’s aerospace business is headquartered in Colorado and has more than 5200 employees — of which more than 60 hold US security clearances, BAE said. The UK company gets the biggest proportion of its revenue from the US, followed by the UK and Saudi Arabia, according to data compiled by Bloomberg.
The value of transactions involving aerospace and defence companies has risen 4 per cent to $US35 billion over the past 12 months, Bloomberg-compiled data show. Deals have included L3Harris Technologies’ $4.7 billion purchase of rocket engine maker Aerojet Rocketdyne Holdings.Westminster, Colorado-based Ball said in June it was exploring options for its aerospace unit.