Sep 18, 2017

Northrop paying $7.8 billion for missile-maker Orbital

Source: Orbital ATK/BusinessWire

Northrop Grumman has agreed to acquire Orbital ATK, a Virginia-based rocket and missile maker, for around $7.8 billion in cash (not including $1.4 billion of assumed debt). The $134.50 per share price represents a 22% premium over Friday's closing price.

  • Why it's a big deal: Because this is the M&A version of never letting a good (or horrifying) crisis go to waste. Northrop hadn't made a major acquisition in 15 years, instead directing its cash toward things like share buybacks, but rising nuclear tensions and related federal expenditures prompted an exception. This purchase also could be viewed as the second domino in defense industry consolidation, following United Technologies' recent $30 billion deal for Rockwell Collins.
  • Bottom line from Bloomberg: "The Orbital acquisition expands Northrop's product line-up in areas such as rocket propulsion, composites and munitions. The contractor is competing with Boeing Co. to develop the next ground-based intercontinental ballistic missile defense system in the U.S., a program that could be worth as much as $85 billion."

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Minneapolis unrest as hundreds protest death of George Floyd

Tear gas is fired as police clash with protesters demonstrating against the death of George Floyd outside the 3rd Precinct Police Precinct in Minneapolis, Minnesota, on Tuesday. Photo: Stephen Maturen/Getty Images

Minneapolis police used tear gas during clashes with protesters demanding justice Tuesday night for George Floyd, an African American who died in police custody, according to multiple news reports.

Driving the news: The FBI is investigating Floyd's death after video emerged of a Minneapolis police officer kneeling on his neck for several minutes, ignoring protests that he couldn't breathe. Hundreds of protesters attended the demonstration at the intersection where Floyd died, per the Guardian.

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U.S. coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Andrew Witherspoon/Axios. This graphic includes "probable deaths" that New York City began reporting on April 14.

Virginia Gov. Ralph Northam announced plans Tuesday to make wearing face coverings mandatory statewide for most people over the age of 10 when inside public places like retailers, on public transportation and government buildings. He announced the measure, effective Friday, as coronavirus case numbers increased to 39,342.

By the numbers: More than 98,900 people have died from COVID-19 and over 1.6 million have tested positive in the U.S. Over 384,900 Americans have recovered and more than 14.9 million tests have been conducted.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Japan is preparing a second coronavirus stimulus package worth $1.1 trillion, or about 40% of the country's gross domestic product, Reuters first reported Tuesday night.

Zoom in: The new measure will be funded by government bonds and will include "a raft of loan guarantees and private sector contributions," per Bloomberg.

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