Northrop Grumman Set to Acquire Orbital ATK for $9.2 Billion in Cash and Debt

Northrop Grumman Set to Acquire Orbital ATK for $9.2 Billion in Cash and Debt

11:49 AM, Sep 18, 2017 — Northrop Grumman (NOC), a global security company, has agreed to acquire Orbital ATK (OA), a maker of satellites, missiles and rockets, for approximately $9.2 billion in cash and assumed debt as it seeks to expand its portfolio of products.

Under the terms of the deal, Northrop Grumman will pay shareholders of Dulles, Virginia-based Orbital ATK $134.50 per share in cash, or about $7.8 billion, and assume $1.4 billion in net debt, Northrop said on Monday on its website. It expects the deal to close in the first half of 2018 pending approval by regulators and Orbital shareholders.

The acquisition is expected to be accretive to earnings per share and free cash flow per share in the first full year after closing, and will help Northrop Grumman save $150 million by 2020 on a pre-tax basis. The company expects to post sales of between $29.5 billion to $30 billion in 2017 on a pro forma basis.

“The acquisition of Orbital ATK is an exciting strategic step as we continue to invest for profitable growth,” Wes Bush, chief executive officer of Northrop Grumman, said. “Through our combination, customers will benefit from expanded capabilities, accelerated innovation and greater competition in critical global security domains.”

Companies: Northrop Grumman Corporation
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