(Reuters) -British defence group BAE Systems said on Thursday it agreed to buy Ball Corp’s aerospace business for about $5.55 billion in cash.
BAE said it expected the deal to add to its earnings per share and margins in the first year post completion.
Reuters had reported in July that private equity firms Blackstone Inc and Veritas Capital Fund Management were competing against defence companies such as BAE, General Dynamics Corp and Textron to buy the business.
Ball Corp, which makes beer cans, said it would use the proceeds to trim its $9.7 billion debt pile, return money to shareholders and speed up organic growth across its global packaging operations.
“The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending,” BAE Chief Executive Charles Woodburn said in a statement.
The aerospace business accounted for 13% of Ball’s consolidated net sales in 2022.
(Reporting by Yadarisa Shabong in Bengaluru; editing by Subhranshu Sahu and Jason Neely)
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