BAE Systems plc (LSE:BA.) entered into an agreement to acquire Ball Aerospace Business of Ball Corporation (NYSE:BALL) for $5.5 billion on August 17, 2023. The acquisition will be funded by a combination of new external debt and existing cash resources. The agreement includes a termination fee of $100 million payable by BAE Systems, Inc. to Ball Aerospace's parent company in the event the transaction is terminated because certain required regulatory conditions are not met within the agreed timeframe. Transaction completion is subject to customary regulatory approvals and conditions with a targeted completion date in the first half of 2024. The transaction will be accretive to margins and earnings per share in the first year post completion including run-rate cost synergies and accretive to cash flow per share in the first year. Net proceeds accelerate deleveraging, share repurchases and drive significant EVA accretion.

Morgan Stanley & Co. LLC acted as financial advisor to Ball Corporation. Shilpi Gupta, David R Clark, Victor Hollender, Michael E Leiter, Stuart D Levi, Nancy M Olson, David E Schwartz, David M Wagener, David P Wales and Joseph M Yaffe of Skadden, Arps, Slate, Meagher and Flom LLP and Axinn Veltrop and Harkrider LLP acted as legal advisor to Ball Corporation. Bank of America Securities Limited acted as financial advisor for BAE Systems plc.