Northrop Grumman paying $9.2bn for Orbital ATK
US security giant Northrop Grumman Corporation, which has local operations just outside Peterborough, has agreed to acquire fellow New York business Orbital ATK – a global leader in aerospace and defence technologies – in a deal stacking up to $9.2 billion.
The Wall Street ‘wedding’ involves Northrop Grumman paying $7.8bn cash plus the assumption of $1.4bn in net debt.
The deal has been approved unanimously by the boards of both companies and is expected to close in the first half of 2018.
Wes Bush (pictured), chairman, chief executive officer and president of Northrop Grumman, said: “The acquisition is an exciting strategic step as we continue to invest for profitable growth.
“Through our combination, customers will benefit from expanded capabilities, accelerated innovation and greater competition in critical global security domains.
“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.”
On completion of the acquisition, Northrop Grumman plans to establish Orbital ATK as a new, fourth business sector to ensure a strong focus on operating performance and a smooth transition into the group.
On a pro forma 2017 basis, Northrop Grumman expects to have sales in the range of $29.5bn to $30bn based on current guidance.