Northrop Grumman

Northrop Grumman (2)

Wednesday, 27 September 2017 15:14

Northrop Grumman to Acquire Orbital ATK

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Northrop Grumman Corporation and Orbital ATK, Inc. announced they have entered into a definitive agreement under which Northrop Grumman will acquire Orbital ATK for approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt. The agreement has been approved unanimously by the Boards of Directors of both companies. 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.

“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,” said Wes Bush, chairman, chief executive officer and president of Northrop Grumman.

“We are very pleased to announce this agreement with Northrop Grumman. It reflects the tremendous value Orbital ATK has generated for our customers, shareholders and employees.  The unique alignment in culture and mission offered by this transaction will allow us to maintain strong operational performance on existing programs while we pursue new opportunities that require the enhanced technical and financial resources of a larger organization. Our employees will also benefit from greater development and career opportunities as members of a larger, more diverse aerospace and defense enterprise. We will remain focused on operational excellence and execution during and after the transition into Northrop Grumman,” said David Thompson, president and chief executive officer of Orbital ATK.

Upon 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 Northrop Grumman.

Northrop Grumman Corporation (NYSE:NOC), a leading aerospace and defense manufacturer of manned and unmanned aircraft, satellites, electronics, robotics and other systems, celebrated Manufacturing Day this week at its facilities across the country. Twenty Northrop Grumman sites held activities designed to draw attention to the outstanding career opportunities in manufacturing and to showcase the company's expansive capabilities.

Over the next decade it is estimated that nearly 3.5 million U.S. manufacturing jobs will be needed and 2 million of those positions are expected to go unfilled due to manufacturers' inability to find talent with the required skills, according to a study by the Manufacturing Institute and Deloitte Consulting LLP. Manufacturing Day, an annual national event held on the first Friday in October, is a grassroots effort by U.S. manufacturers designed to showcase modern manufacturing technology and careers, and improve the public perception of manufacturing in America.

Northrop Grumman was among hundreds of manufacturers across the nation that hosted students, employees, job seekers, and other local community members at open houses. Some of the activities included:

  • Tours for middle school, high school and college students of space foundry/manufacturing facilities
  • Numerous appreciation events for manufacturing and production employees
  • A manufacturing demonstration for a high school robotics team
  • A fashion show for manufacturing employees
  • Media tours highlighting the company's impact to local communities, focus on environmentally conscious manufacturing, and its role in defense manufacturing

At 12 Northrop Grumman facilities nationwide, employees assisted science, technology, engineering and math students from area high schools with a prosthetic hand assembly project. Traditional prosthetic hands can cost thousands of dollars, whereas the student-constructed devices cost $30-40 and were made using advanced, additive manufacturing. The hands were donated to Enabling the Future, a nonprofit that specializes in providing prosthetics to children in need around the globe.

Northrop Grumman's Palmdale, California site recently received the Silver level Zero Waste certification from the U.S. Zero Waste Business Council, becoming the first aerospace production and manufacturing facility in the U.S. to receive this honor. The Palmdale site, which produces F-35 center fuselages was voted Assembly Plant of the Year in 2013 by Assembly Magazine.

For more information, visit: www.northropgrumman.com

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