ATK to spin off sports biz, merge defense, aerospace with Orbital Sciences
Alliant Techsystems is merging its aerospace and defense businesses with Orbital Sciences Corp. The company will then spin off its outdoor sports business to be its own enterprise.
Alliant Techsystems is merging its aerospace and defense businesses with Orbital Sciences Corp. The company will then spin off its outdoor sports business to be its own enterprise.
In a statement released on Tuesday, ATK said that its businesses have fundamental differences that would benefit from being standalone companies.
After the merger, Alliant will change its name to Orbital ATK Inc., which will have combined fiscal 2013 revenues of $4.5 billion. Current ATK shareholders will own about 53.8 percent of Orbital ATK, and current Orbital shareholders will own 46.2 percent. About $1.7 billion of existing ATK debt will remain with Orbital ATK, according to an ATK release.
ATK’s DeYoung will become president and CEO of Sporting, while Orbital co-founder David W. Thompson will head up Orbital ATK as president and CEO. Retired Gen. Fogleman will serve as chairman of Orbital ATK.
Other Orbital ATK management details include: Blake Larson, current senior vice president and president of ATK’s aerospace group, will serve as chief operating officer of Orbital ATK, and Garrett Pierce, Orbital chief financial officer, will serve as chief financial officer of Orbital ATK.
The merged company will be headquartered in Dulles, Va., and is expected to have around 13,000 employees across 17 states.
“This transaction presents a compelling opportunity to position and build strong, durable and focused enterprises that deliver innovation, execution excellence and enhanced opportunities for our customers, partners and employees, and thereby deliver long-term shareholder value,” said ATK president and CEO Mark W. DeYoung.
"We believe both companies will be better able to support and respond to the needs of their markets and customers, creating a stronger player in the A&D industry, while unlocking the potential to grow the value of the ATK Sporting Group,” Fogleman said.
Transactions are expected to close at the end of the 2014 calendar year.
Bank of America Merrill Lynch and Cravath, Swaine & Moore LLP served as ATK’s financial advisor and legal advisor respectively. Citigroup and Hogan Lovells US LLP served as financial and legal advisor to Orbital.