Deals
Northrop Bulks Up Missile Business on $7.8 Billion Orbital Deal
- Acquisition expands offerings in rocket propulsion, munitions
- Deal price represents 22% premium over Sept. 15 closing price
Northrop Agrees to Buy Orbital in $7.8 Billion Deal
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Northrop Grumman Corp.’s $7.8 billion purchase of Orbital ATK Inc. will expand its space and missile businesses just as the U.S. steps up efforts to defend against a possible strike by North Korea and threats in the Middle East.
The deal cements a turnaround for Northrop, which had been the target of breakup speculation before it scored an upset win in 2015 to build the next U.S. stealth bomber. The transaction, the largest in the defense industry in two years, adds rocket propulsion, missile-defense and satellite expertise to Northrop’s capabilities as a major U.S. weapons maker.