In another multi-billion-dollar aerospace acquisition, Northrop Grumman is set to buy Orbital ATK, Northrop Grumman said. For $9.2 billion, the acquisition is expected to close in the first half of next year.
“The acquisition of Orbital ATK is an exciting strategic step as we continue to invest for profitable growth,” said Wes Bush, chairman, CEO and president of Northrop Grumman. “Our complementary portfolios and technology-focused cultures will yield significant value creation through revenue synergies associated with new opportunities, cost savings, operational synergies and enhanced growth.”
Orbital ATK would be added to Northrop Grumman as a new, fourth business sector. Northrop Grumman said that on a pro forma 2017 basis, it expects sales at about $30 billion, based on current guidance.
Northrop Grumman would pay $7.8 billion in cash for the acquisition, plus the assumption of $1.4 billion in net debt, the company said. Orbital ATK shareholders would receive all-cash consideration of $134.50 per share. Both companies’ boards of directors approved the deal unanimously.