FALLS CHURCH, Va., - BAE Systems in Falls Church, Va. announced that it has completed the $5.6 billion acquisition of Ball Aerospace's space, science, and defense capabilities to the company's portfolio of products and services through a new business called Space & Mission Systems. Ball in Broomfield, Colo. will continue to focus on aluminum packaging for global beverage and household brands. BAE Systems will employ approximately 5,000 former Ball Aerospace workers.
"Today marks a significant milestone in Ball's 144-year history. We extend our best wishes for continued success to our former colleagues and their new BAE Systems, Inc. teammates. Ball will utilize the approximately $4.5 billion of after-tax cash proceeds to reduce leverage, return value to shareholders and embark on the next step in our journey with greater financial flexibility and a focused purpose of advancing sustainability through aluminum packaging solutions that support a world-free from waste. Our culture, purpose, operating model, and team are aligned with current and future shareholders' interests by acting responsibly, delivering innovation at scale, and generating cash flow and higher EVA returns to accelerate shareholder value creation now and beyond," said Daniel W. Fisher, chairman and chief executive officer.
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"As previously communicated, the company will use approximately $2 billion of the after-tax proceeds to reduce net debt and use approximately $2 billion of the after-tax proceeds to return value to shareholders via share repurchases and utilize the remaining proceeds to further strengthen the balance sheet," said Howard Yu, executive vice president and chief financial officer.
Morgan Stanley & Co. LLC served as Ball Corporation's financial advisor. Skadden, Arps, Slate, Meagher and Flom LLP and Axinn Veltrop and Harkrider LLP served as Ball Corporation's legal and regulatory advisors for the transaction.
