BAE has acquired Ball Aerospace, a NASA supplier that makes satellite instruments for the James Webb Space Telescope. Getty Images
BAE Systems has agreed to buy Ball Aerospace, a NASA supplier, for $5.6bn (£4.4bn) as the defense giant deepens into space wars.
Blockbuster Acquisition, Biggest Ever in BAE history, will provide it with technology that can track armies and weapons from space to stop hypersonic missiles that travel five times faster than sound.
Ball Aerospace, which has 5,200 employees, sells high-tech equipment to NASA and the Pentagon , and is also working on the Hubble and James Webb telescopes.
It is part of America's booming space sector, which is now worth over $200 billion. .
Charles Woodburn, chief executive of BAE, said he sees space as «an increasingly important area of future wars.»
largest defense budget in the world,” he added.
BAE Systems chief Charles Woodburn hailed the «strong growth prospects and close match» of the Ball Aerospace deal. Photo: Andrew Matthews/PA Wire
BAE is one of several companies mulling their response to the changing missile capabilities of Russia and China, which have tested hypersonic systems in recent years.
Typical missiles fly at about 3 Mach, while hypersonics fly at a speed of at least Mach 5, which is about 3800 miles per hour, which is five times the speed of sound.
Ships are thought to be particularly vulnerable to attack, especially if they encounter multiple weapons at the same time, which poses a serious threat to aircraft carriers, which the West uses to demonstrate its power around the world.
The deal with Ball will also improve the situation BAE in the US, which is the firm's largest market, accounting for 44% of its revenues.
Followed by the UK, Saudi Arabia and Australia.
BAE, which builds Britain's Typhoon fighter jets as well as all attack and nuclear submarines, has drastically increased orders over the past year following Russia's attack on Ukraine. .
Tom Arsenault, president of BAE's US division, said technology that can track hypersonic weapons is now «moving into the space realm.»
He said 85% of Ball's revenue comes from his defense. divisions.
However, in the US, Ball's parent group is better known for their aluminum cans and drink cups. It started out as a manufacturer of home filling kits for jams, pickles and other preserves.
Analysts at Jefferies say the deal was «good if a little pricey» as BAE will pay 14 times what the firm did. earnings.
Earlier this month, BAE said Russia's invasion of Ukraine and funding for the UK's new fleet of nuclear submarines boosted sales.
Revenue jumped 11% to £12bn for first six months of the year, and further increases are projected.
In May, BAE received a £1.8bn contract to produce 246 CV90 armored vehicles for the Czech Republic.< /p>
The vehicle is very popular with BAE and has been bought by Sweden, Norway, Finland, Denmark, Estonia, Slovakia , the Netherlands and Switzerland.
Sweden agreed to donate 51 of them to Ukraine.
Sales also came from Poland, which bought anti-aircraft missiles from MBDA, a European missile manufacturer in which BAE has a stake .
Mr. Woodburn also discussed the ramp-up of arms production in Ukraine during talks with Ukrainian President Volodymyr Zelensky, another sign of the UK's role in arming Ukrainian forces.
Chapter BAE said on Thursday that Ball's deal is «a unique opportunity to add a high-quality, high-growth, technology-driven business.»
«Rarely does a business of this quality, scale and added value, with great growth prospects and close match our strategy,» he added.
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