BAE Systems has completed its purchase of Ball‘s (NYSE: BALL) aerospace business for approximately $5.5 billion.
In August, BAE agreed to buy Ball Aerospace as part of the U.K.-based defense contractor’s efforts to accelerate its space market strategy and expand its technology offerings for the U.S. government.
The completion of the deal came days after BAE announced that it secured the necessary regulatory approvals for the acquisition, which has been funded using external debt and existing cash.
The newly purchased business will operate as Space and Mission Systems as part of BAE’s Electronic Systems reporting segment.
Daniel Fisher, chairman and CEO of Ball Corp., said in a statement published Friday the company will use after-tax cash proceeds worth approximately $4.5 billion to return value to shareholders, reduce leverage and further advance sustainability through its aluminum packaging products.
Morgan Stanley & Co. was Ball’s financial adviser in the deal. Skadden, Arps, Slate, Meagher and Flom and Axinn Veltrop and Harkrider acted as legal and regulatory advisers to the corporation in the transaction.
