Ball Corporation, has announced that it has reached an agreement to sell its aerospace business to BAE Systems for gross cash consideration of $5.6 billion. This figure represents 19.6 times comparable earnings before interest, taxes, depreciation and amortization for the last twelve months as of June 30, 2023. The closing of the transaction is subject to regulatory approvals and customary procedures, and is expected to be completed in the first half of next year.
The transaction closed successfully, with approximately US$4.5 billion in after-tax proceeds. This cash, together with the strong free cash flow created from the organization’s packaging activities, will be used to reduce net debt to a comparable EBITDA in 2023 that should be around 3.0x. This puts the company at the lower end of its long-term leverage range, allowing it to quickly return capital to investors through dividends and buybacks with a reduced amount of money invested.
Following the success of today’s transaction, Ball Corporation’s balance sheet will be further strengthened and endowed with flexibility. The highly cash-generative packaging businesses, coupled with the profitable ownership mentality of our team, provide a great equation for increasing the return of value to shareholders, maximizing the value of existing operations and investing for future growth through EVA. Our plan is to generalize the use of circular aluminum packaging worldwide, accelerating low-carbon, value-added aluminum packaging initiatives to stimulate organic growth in our global packaging operations and improve the world for generations to come. Our aluminum cans, bottles and cups portfolio is underutilized, but has undiscovered potential; we look forward to unlocking that value while delivering sustainable compounded growth to shareholders now and in the future,” Fisher said.
Ball declares quarterly dividends
Ball slows down in its second quarter
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BALL CORPORATION ANNOUNCES SECOND QUARTER LOSS
BALL INCREASES RESULTS IN THE FIRST QUARTER OF THE YEAR
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