Top defence contractor BAE Systems said it had reached an agreement to buy US firm Ball Aerospace in a $5.5 billion (£4.3bn) deal.
The group has a joint venture at Hadley Castle Works in Telford, known as Rheinmetall BAE Systems Land which specialises in land combat vehicles.
The company said Ball Aerospace was a unique opportunity to strengthen BAE Systems’ world class multi-domain portfolio.
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.”
Completion of the deal, subject to customary regulatory approvals and conditions, is expected to be concluded in the first half of 2024.
Ball Corporation chief executive Daniel Fisher said: “Since 1956, generations of dedicated Ball Aerospace colleagues have transformed a business of humble beginnings into a thriving enterprise offering innovative capabilities in a world that needs rapid, scalable technology solutions.
“In recent years, the business has positioned itself to have an even greater contribution to customers’ missions and delivered fourfold growth and record levels of combined contracted and won-not-booked backlog.
“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 centred in Boulder, Broomfield and Westminster, Colorado, to provide a multi-dimensional platform for vital national defence, intelligence, and science hardware, software and space-based assets.”
Source: Shropshire Star