BAE Systems has agreed to acquire Ball Aerospace from Ball Corp. for $5.55 billion. Ball Aerospace manufactures spacecraft, instruments and sensors, laser remote sensing systems, and microwave technologies.
On Bloomberg, an earlier report cited people familiar with the talks said a deal could be reached within the next couple of days.
Ball first mentioned plans to divest its aerospace unit in June. The Westminster, Colorado-based company said it will concentrate its efforts and resources on its core packaging operations. Selling Ball Aerospace will also allow Ball Corp. to reduce debt amassed following its purchase of consumer packaging company Rexam in 2016.
A representative for BAE did not comment on the proposed acquisition but said the company regularly reviews its products and services portfolio. Ball has yet to issue a statement.
Reuters revealed that London-listed BAE was one of the parties competing against private equity firms and other defense companies interested in purchasing the aerospace unit, a regular U.S. government contractor in national security, intelligence and other sectors.
The acquisition is expected to close in the first six months of 2024.