The deal, one of the largest takeovers by a UK company this year, will allow BAE to expand into technologies that are fast becoming US defence priorities.
Ball Aerospace’s parent company, Ball Corporation, put the company up for sale earlier this year. It specialises in instruments, sensors and spacecraft, including some of the most sensitive satellite technologies, as well as civilian applications such as monitoring weather patterns.
Ball’s defence technologies include laser communication systems that are able to link infantry and drones via satellite, and satellite tracking systems that enable spacecraft to monitor potential threats from other vehicles in space.
Ball Aerospace has “strong growth potential in areas aligned with the US intelligence community and [US] Department of Defense’s highest priorities”, according to a statement released by BAE.
BAE reported record orders this year helped in part by Russia’s invasion of Ukraine.
BAE said more than 60% of Ball’s 5,200 employees hold US security clearances, allowing them to work on sensitive military technologies.
The Ball Aerospace purchase will give BAE a business with $2bn in revenues and $310m in profits in space, missiles and military computing technologies, and BAE wants to grow the business by 10% a year over the next five years.
Commenting on the deal Charles Woodburn, BAE’s chief executive, 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.”
