Ball Corp's Stock Surges on $5B Aerospace Unit Sale ReportsLarge Caps 0 replies 0 likes 0 votes 137 views
Ball Corp (NYSE: BALL) is causing quite the buzz in the market. Word on the street is that Ball Corp, the world's largest beer can manufacturer, is exploring the possibility of selling off one of its units that specializes in aerospace and national defense equipment. And the price tag on this potential sale? Hold onto your hats—it's a jaw-dropping $5 billion or more!
Now, I know you're all familiar with Ball Corp's expertise in producing those trusty beer cans, but this potential sale could mean some big changes for the company. If they go ahead with it, Ball Corp will have the chance to double down on their packaging operations and, of course, reduce their debt, which is always a welcome move for any business.
Let's dive into the numbers a bit, shall we? Last year, the aerospace unit accounted for approximately 13% of Ball Corp's overall sales. However, in the first quarter of this year, the company experienced a 6.2% decline in revenue, amounting to $3.49 billion. This dip was partially due to a decrease in beverage can shipments, which occurred as Ball Corp divested from its Russian operations following the Ukraine crisis.
So, what's the latest scoop? Well, insider sources have revealed that Ball Corp has kicked off an auction process to sell their aerospace unit. And guess who's in the running? Companies like BAE Systems (OTCPK: BAESF), Textron (NYSE: TXT), and even a few private-equity firms are considering throwing their hats in the ring. Looks like there's quite a lineup of potential buyers vying for a piece of the pie.