Ball Corporation

History

2023: BAE Systems bought Ball's aerospace division

On August 17, 2023, Britain's largest defense corporation, BAE Systems, announced an agreement to purchase Ball Aerospace, the aerospace division of the American Ball Corporation. The transaction amount is approximately $5.55 billion.

Ball Aerospace was founded in 1956. The company specializes in the development of spacecraft, as well as various tools and sensors for defense and civilian satellites. Ball Aerospace systems, among other things, are used to track space objects in orbit and to monitor weather and climate change. The company is headquartered in Colorado and employs approximately 5,200 employees, more than 60% of whom have security clearance USA (by August 2022).

BAE Systems Announces Agreement to Buy Ball Aerospace

The transaction is planned to be carried out at the expense of funds. The merger will be completed in the first half of 2024, subject to necessary regulatory approvals. The agreement provides for compensation in the amount of $100 million for termination of the transaction: this amount will be paid by BAE Systems to the parent company Ball Aerospace if the transfer of assets fails due to non-compliance with regulatory requirements on time.

The proposed acquisition of Ball Aerospace is a unique opportunity to add a high-quality, fast-growing aerospace business with significant capabilities and good prospects to our core assets, "said Charles Woodburn, chief executive of BAE Systems.

BAE Systems intends to use Ball Aerospace's expertise in space technology, payloads, optical systems, sensors, analytical tools and antenna systems to develop its own products and technologies.^[1]

2022

Sale of Russian business to Arnest Group for $530 million

September 22, 2022 it became known about the sale of the Russian business American of the manufacturer of aluminum cans Ball. These assets for $530 million were bought by the Stavropol group Arnest, specializing in the production of perfume and cosmetic products and household chemicals.

{{quote 'This decision is the result of months of thought, as a result of which a solution was found that best ensures the future of Ball's colleagues and assets in Russia. We believe this is a reasonable outcome for Ball in these geopolitical settings, "said Ball Corporation President and CEO Dan Fisher, commenting on the Arnest Group deal. }}

Russian business of the American manufacturer of aluminum cans Ball

The deal included three Ball plants for the production of aluminum cans for beer and soft drinks - in the Moscow, Leningrad and Chelyabinsk regions. The American company said that the change of ownership will not affect stable work, since the Arnest group has the necessary competencies and has its own production of aluminum packaging for aerosol products. Ball's aerosol division has worked with the Arnest team in the past.

On September 19, 2022, Arnest Management LLC received permission from the Government Commission for Monitoring Foreign Investments to complete a transaction on terms agreed with the seller, the company said.

Russian business Ball in 2021 provided about 4% of the company's total revenue (amounted to $13.8 billion) and 8% of operating profit. The company's factories in Russia produced about 5% of the global supply of drinks cans (a total of 112.5 billion cans).

Earlier in 2021, Ball announced the termination of investments in the Russian Federation against the background of Russia's military special operation in Ukraine.^[2]

Losses of $435 million due to leaving Russia

Beer can manufacturer Ball Corporation estimated $435 million in losses due to leaving Russia. The American company announced this in August 2022.

Ball has suspended future investments in Russia and is selling its aluminum beverage packaging business. In the second quarter of 2022, the situation at Ball worsened, and he determined that this was an impetus for the group of long-term assets in Russia. As a result, Ball conducted an analysis of the expected recoverability of cash flows to estimate the fair value of long-term assets and recorded an impairment loss of $435 million, the manufacturer said in a statement.

Ball Corporation lost $435 million due to leaving Russia

Ball Corporation announced the curtailment of its Russian business at the end of March 2022. Then the company said that it would immediately reduce operations at factories in the country and begin the process of selling local business to a new owner. The decision is related to the ongoing military operation of the Russian Federation in Ukraine.

According to a Kommersant source among beverage manufacturers, Ball accounts for about 60-65% of all aluminum cans consumed by Russian companies.

The rest is provided by To Poland CanPack, which operates factories in the Moscow and Rostov regions. CanPack and the Aluminum Association, which includes both companies, did not provide an operational comment.

By August 2022, Ball has three plants in Russia: in Naro-Fominsk (Moscow region), Vsevolozhsk (Leningrad region) and Argayash (Chelyabinsk region). The company also planned to build an enterprise in Ulyanovsk.

Russian assets accounted for about 4% of the company's revenue. The Association of Beer Producers (APP) hopes that a sharp reduction in the production of aluminum drinks cans will not occur, despite the closure of the Ball Corporation business.^[3]

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