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AFTER HOURS: Northrop Grumman, Orbital ATK, Scorpio Tankers and Neos Therapeutics

AFTER HOURS: Northrop Grumman, Orbital ATK, Scorpio Tankers and Neos Therapeutics”

There's yet another aviation mega-deal: Northrop Grumman announced a $7.8 billion deal to buy Orbital ATK. early Monday.

In 2015, Northrop won an $80 billion mega-contract from the US military for the Long Range Strike Bomber planned for the mid-2020s.

Dulles, Virginia-based Orbital is both a government contractor and supplier of various aerospace and defense technologies, such as missile systems and products, launch vehicles, and weaponry.

Orbital shares were up almost 20% premarket.

Northrop is valued at $46.5 billion, while Orbital is valued at $6.3 billion.

The deal, expected to close in the first half of 2018, comes as the firing of missiles by North Korea in recent months has focused attention on missile defense systems.

Orbital shareholders will receive an all-cash consideration of $134.50 per share.

Rockwell Collins Inc., Boeing Co., Northrop Grumman, Raytheon Co., Lockheed Martin Corp. and Honeywell International Inc., are all hitting new highs. Northrop will also assume $1.4 billion of Orbital's debt, which it said brings the total value of the deal to more than $9 billion.

Northrop expects the deal to be accretive to earnings per share in the first year, realize approximately $150 million in annual pre-tax cost savings by 2020 and generate about $30 billion in 2017 pro-forma sales.



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