WESTMINSTER, Colo., Feb. 16,
2024 /PRNewswire/ -- Ball Corporation (NYSE: BALL)
the world's leading producer of sustainable aluminum packaging for
global beverage and household brands, today announced that the
company completed the sale of its aerospace business for
approximately $5.6 billion subject to
customary closing adjustments.
"Today marks a significant milestone in Ball's 144-year history.
We extend our best wishes for continued success to our former
colleagues and their new BAE Systems, Inc. teammates. Ball will
utilize the approximately $4.5
billion of after-tax cash proceeds to reduce leverage,
return value to shareholders and embark on the next step in our
journey with greater financial flexibility and a focused purpose of
advancing sustainability through aluminum packaging solutions that
support a world free from waste. Our culture, purpose, operating
model, and team are aligned with current and future shareholders'
interests by acting responsibly, delivering innovation at scale,
and generating cash flow and higher EVA returns to accelerate
shareholder value creation now and beyond," said Daniel W. Fisher, chairman and chief executive
officer.
"As previously communicated, the company will use approximately
$2 billion of the after-tax proceeds
to reduce net debt and use approximately $2
billion of the after-tax proceeds to return value to
shareholders via share repurchases and utilize the remaining
proceeds to further strengthen the balance sheet," said
Howard Yu, executive vice president
and chief financial officer.
Morgan Stanley & Co. LLC served as Ball Corporation's
financial advisor. Skadden, Arps, Slate, Meagher and Flom LLP and
Axinn Veltrop and Harkrider LLP served as Ball Corporation's legal
and regulatory advisors for the transaction.
About Ball Corporation
Ball Corporation supplies
innovative, sustainable aluminum packaging solutions for beverage,
personal care and household products customers. Ball Corporation
employs 16,000 people worldwide (excluding divested aerospace
staff) and reported 2023 net sales of $14.03
billion. For more information, visit www.ball.com, or
connect with us on Facebook or Twitter.
Forward-Looking Statement
This release contains
"forward-looking" statements concerning future events and financial
performance. Words such as "expects," "anticipates," "estimates,"
"believes," and similar expressions typically identify forward
looking statements, which are generally any statements other than
statements of historical fact. Such statements are based on current
expectations or views of the future and are subject to risks and
uncertainties, which could cause actual results or events to differ
materially from those expressed or implied. You should therefore
not place undue reliance upon any forward-looking statements, and
they should be read in conjunction with, and qualified in their
entirety by, the cautionary statements referenced below. Ball
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. Key factors, risks and uncertainties
that could cause actual outcomes and results to be different are
summarized in filings with the Securities and Exchange Commission,
including Exhibit 99 in Ball's Form 10-K, which are available on
Ball's website and at www.sec.gov. Additional factors that might
affect: a) Ball's packaging segments include product capacity,
supply, and demand constraints and fluctuations and changes in
consumption patterns; availability/cost of raw materials,
equipment, and logistics; competitive packaging, pricing and
substitution; changes in climate and weather and related events
such as drought, wildfires, storms, hurricanes, tornadoes and
floods; footprint adjustments and other manufacturing changes,
including the startup of new facilities and lines; failure to
achieve synergies, productivity improvements or cost reductions;
unfavorable mandatory deposit or packaging laws; customer and
supplier consolidation; power and supply chain interruptions;
changes in major customer or supplier contracts or loss of a major
customer or supplier; inability to pass through increased costs;
war, political instability and sanctions, including relating to the
situation in Russia and
Ukraine and its impact on Ball's
supply chain and its ability to operate in Europe, the Middle
East and Africa regions
generally; changes in foreign exchange or tax rates; and tariffs,
trade actions, or other governmental actions, including business
restrictions and orders affecting goods produced by Ball or in its
supply chain, including imported raw materials; and b) Ball as a
whole include those listed above plus: the extent to which
sustainability-related opportunities arise and can be capitalized
upon; changes in senior management, succession, and the ability to
attract and retain skilled labor; regulatory actions or issues
including those related to tax, environmental, social and
governance reporting, competition, environmental, health and
workplace safety, including U.S. Federal Drug Administration and
other actions or public concerns affecting products filled in
Ball's containers, or chemicals or substances used in raw materials
or in the manufacturing process; technological developments and
innovations; the ability to manage cyber threats; litigation;
strikes; disease; pandemic; labor cost changes; inflation; rates of
return on assets of Ball's defined benefit retirement plans;
pension changes; uncertainties surrounding geopolitical events and
governmental policies, including policies, orders, and actions
related to COVID-19; reduced cash flow; interest rates affecting
Ball's debt; successful or unsuccessful joint ventures,
acquisitions and divestitures, and their effects on Ball's
operating results and business generally.
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SOURCE Ball Corporation