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WALL STREET PAYDAY: Banks could earn $85 million from $7.8 billion Northrop deal

Alex Morrell   

WALL STREET PAYDAY: Banks could earn $85 million from $7.8 billion Northrop deal
Finance1 min read

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Shutterstock/Marco Iacobucci EPP

A big payday for Perella Weinberg and Citigroup.

Two Wall Street banks are set to earn a big payday from defense contractor Northrop Grumman's $7.8 billion acquisition of rocket manufacturer Orbital ATK.

Independent investment bank Perella Weinberg Partners and Citigroup will share in as much as $85 million in fees for advising on the deal, according to Jeffrey Nassof, director of consulting firm Freeman & Co.

Northrop will pay Perella Weinberg an estimated $30 million to $40 million, according to Nassof.

Citigroup will make an estimated $35 million to $45 million for advising Orbital, which generates $4.5 billion in revenue thanks to lucrative contracts with NASA and the Army.

The deal is expected to close in the first half of 2018 and will create a company on pace for a combined $30 billion in sales in 2017.

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