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BAE Systems has agreed to buy the aerospace business of conglomerate Ball Corp in a $5.6bn deal, as Britain’s largest defence company expands further into the US.
The FTSE 100 company is paying cash for the Colorado-based business, which produces sensors used by the military and space industry.
The acquisition comes less than a month after BAE lifted its annual profit forecast as the war in Ukraine helped drive orders to new records. BAE builds Eurofighter Typhoon jets, nuclear submarines and combat vehicles and makes ammunition for the British military.
Ball will add about $2.2bn in revenues and is expected to make about $310mn in profits this year, BAE said on Thursday. The US company employs more than 5,000 people.
BAE chief executive Charles Woodburn said the acquisition had a compelling “strategic and financial rationale”.
The deal is expected to complete in the first half of 2024.
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