Northrop Grumman to acquire Orbital ATK
Northrop Grumman has entered into a definitive agreement to acquire Orbital ATK for approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt, the company announced on 18 September.
The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions, including regulatory and Orbital ATK shareholder approval.
Upon completion of the acquisition, Northrop will establish Orbital ATK as a new, fourth business sector to ensure a strong focus on operating performance and a smooth transition into Northrop Grumman.
Wes Bush, chairman, CEO and president of Northrop Grumman, said: ‘The acquisition of Orbital ATK 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. We look forward to welcoming Orbital ATK’s talented employees to Northrop Grumman and believe our combined strength will benefit our customers and shareholders.’
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