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- Price represents 19.6x Ball Aerospace’s LTM comparable EBITDA (as of June 30, 2023)
- Net proceeds accelerate deleveraging, share repurchases and drive significant EVA® accretion
- Creates a focused, high-margin global aluminum packaging leader
- Enables acceleration of low-carbon, best-value aluminum packaging initiatives to enhance organic growth across global packaging operations
- BAE Systems well-positioned to invest in Ball Aerospace in excess of our existing plan
WESTMINSTER, Colo., Aug. 17, 2023 /PRNewswire/ — Ball Corporation BALL the world’s leading producer of circular aluminum packaging for global beverage and household brands, today announced that it has reached an agreement to sell its aerospace business to BAE Systems BA for gross proceeds of $5.6 billion in cash, which represents 19.6x Ball Aerospace’s LTM comparable EBITDA (as of June 30, 2023). The transaction, which is subject to regulatory approvals and customary closing conditions and adjustments, is projected to close in the first half of 2024.
Following the successful close of the transaction announced today, the combination of roughly half of the after-tax proceeds of approximately $4.5 billion and robust free cash flow generated from the company’s packaging operations will be used to reduce net debt to pro forma expected 2023 comparable EBITDA to approximately 3.0x, the low-end of the company’s long-term leverage range. As a result, the company will be well-positioned to accelerate capital return to shareholders via share repurchases and dividends over a lower average invested capital base.
“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…
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