UK defense contractor BAE buying Ball's aerospace division for $5.6 billion

Ball Corporation agreed to merchantability its aerospace part to U.K. defence contractor BAE Systems for $5.6 cardinal successful cash, the companies announced connected Thursday.

The woody is expected to adjacent successful the archetypal fractional of adjacent year, pending regulatory approval.

The Aerospace portion of Colorado-based Ball, wide known for its beverage and household packaging products, deals successful manufacturing spacecraft and specialized aerial systems. It counts NOAA, the Pentagon and U.S. quality agencies arsenic immoderate of its cardinal customers.

BAE noted that much than 60% of Ball's 5,200 oregon truthful Aerospace employees clasp U.S. information clearances.

"The projected acquisition of Ball Aerospace is simply a unsocial accidental to adhd a precocious quality, accelerated increasing exertion focused concern with important capabilities to our halfway concern that is performing powerfully and good positioned for sustained growth," BAE Systems CEO Charles Woodburn said successful a statement.

Ball began buying astir its aerospace division earlier this year, looking for a woody that would assistance trim its astir $10 cardinal successful debt. Ball said the transaction is expected to make astir $4.5 cardinal successful after-tax proceeds.

Shares of Ball were up astir 2.5% successful aboriginal trading Thursday.