According to a new Financial Times report on Thursday, British defense contractor BAE Systems has entered into an agreement to purchase the aerospace division of US Ball Corporation in a cash deal worth $5.55 billion.

The outlet reported that according to BAE, the UK defense company will see annual revenues grow by more than $2 billion. The deal is set to close in the first half of next year.

BAE was quoted in the report as saying that Ball, which manufactures defense technologies and mission-critical space systems, shows “strong growth potential in areas aligned with the US intelligence community and department of defense’s highest priorities.”

Charles Woodburn, the chief executive of the UK company, said the purchase of Ball had a strong “strategic and financial rationale.”

Less than a month ago, BAE reported it was already raising its annual profit projections due to the record number orders which were being produced to supply Ukraine in its war with Russia. Normally responsible for the manufacture of everything from ammunition for the UK Military, to Eurofighter Typhoon jets, to combat vehicles, and even nuclear submarines, BAE revealed orders have skyrocketed of late due to the conflict in Ukraine. The company is now expecting to produce over £1.8 billion ($2.2 billion) in free cash flow, which beats the previous forecast by $765 million.

A recent analysis by Defense News magazine found that the top Western defense contractors have seen revenues soaring due to the war in Ukraine, with over $200 billion in revenue booked for 2022. The report found that the US, EU, and UK arms manufacturers have benefitted massively due to the war in Ukraine. At the same time, the Pentagon inspector general has found that military equipment supplied to Ukraine as military aid for the war has shown up in the hands of criminal groups.