ATK To Spin-Off Sporting Group
Alliant Techsystems Inc. (ATK) announced in April its plans to create two independent, public companies, separating its Sporting Group and Aerospace and Defense divisions.
ATK’s board approved an agreement for a tax-free spin-off of the company’s Sporting Group to ATK shareholders.
Following the spin-off, there will be a tax-free, all-stock merger between ATK’s Aerospace and Defense Groups and Orbital Sciences Corp. The new company will be named: Orbital ATK Inc.
“We are creating two strong, standalone companies committed to sustained leadership and success in their markets,” said Mark W. DeYoung, ATK president and CEO.
Orbital has been a customer of ATK for decades.
“This merger-of-equals combination of Orbital and ATK brings together two of the space and defense industry’s most innovative developers and cost-efficient manufacturers who have worked closely together for over 25 years,” said David W. Thompson, Orbital’s chairman, president and CEO.
Upon completion of the transaction, DeYoung will serve as the chairman and CEO of Sporting. Sporting will be headquartered in Utah and is expected to employ nearly 5,800 workers in 11 states and worldwide.
Thompson, an Orbital cofounder, will serve as president and CEO of Orbital ATK. The new company will be headquartered in Dulles, Va., where Orbital is currently headquartered, and is expected to have approximately 13,000 employees in 17 states.
The transaction is expected to close by the end of 2014, and is subject to customary closing conditions including regulatory approvals and the approval of each of ATK’s and Orbital’s shareholders. ATK and Orbital will continue to operate separately until the transaction closes. ATK intends to continue issuing quarterly cash dividends to shareholders until the transaction closes.
ATK Sporting Group
ATK entered the commercial ammunition and sporting accessories market in 2001. Since then, the company has established a strong position in the shooting sports for hunters, shooting enthusiasts and law enforcement professionals. The acquisitions of Savage Arms and Bushnell in 2013 enabled ATK to expand its core offerings, while creating opportunities in other markets in the outdoor recreation industry.
The Sporting Group brands include: Federal Premium, Bushnell, Savage Arms, BLACKHAWK!, Primos, Final Approach, Uncle Mike’s, Hoppe’s, RCBS, Alliant Powder, CCI, Speer, Champion Targets, Gold Tip Arrows, Weaver Optics, Outers, Bollé, Cebe and Serengeti.
“Sporting continues to deliver excellent performance. Results from our recently completed fourth quarter demonstrated continued revenue and earnings growth, and margin expansion,” DeYoung said.
During the past 10 years, ATK’s Sporting Group has delivered annual sales growth of approximately 16 percent (14 percent organic growth).
Remington Announces Consolidation
Remington Outdoors Co. (ROC) announced in mid-May it will relocate a number of its companies and operations to its new facility in Huntsville, Ala.
“This was a strategic business decision to concentrate our resources into fewer locations and improve manufacturing efficiency and quality,” said Teddy Novin, ROC director of public affairs.
The companies affected are: Advanced Armament Corp., Lawrenceville, Ga.; Montana Rifleman, Kalispell, Mont.; TAPCO, Kennesaw, Ga.; LAR Manufacturing, West Jordan, Utah; Para-Ordnance, Pineville, N.C.; DPMS, St. Cloud, Minn.; Bushmaster and Remington’s 1911 production, Ilion, N.Y.; and the Remington Technical Center, Elizabethtown, Ky.
“We are working hard to retain as many people from the affected facilities as possible,” Novin said.
In mid-February, Remington announced it had purchased a former Chrysler building in Huntsville.
“This additional capacity is essential to fulfill demand and introduce new products. Having watched our company grow from 2,400 employees in 2008 to 4,200 employees by the end of 2013, a five-year, 75 percent increase, it is easy to see why we’re investing now,” said George Kollitides, ROC chairman and CEO.
Brownells Supports Gunsmithing, Veterans
Brownells announces its continuing support for the American Pistolsmiths Guild (APG) Gunsmith Scholarship Program. Since the program began in 2010, Brownells has donated $12,000, helping 12 recipients fund their educations at gunsmithing schools across the U.S.
The APG awards a maximum of five scholarships per year. Qualifying students who are selected receive $1,500 from the APG and an additional $1,000 from Brownells to spend on anything they need, including tuition, housing needs and transportation to and from school. Recipients are listed as “student members” of the APG.
“Brownells has been instrumental in the growth of the pistolsmith and gunsmith trade for decades by providing top-quality tools and supplies,” said APG president John Yanek.
Brownells also announces its support for Freedom Alliance’s “Support Our Troops” program with a donation of $10,000 to the Outdoor Adventures program, which provides outdoor-related recreational opportunities for combat-wounded U.S. servicemen and women and their families.
“Brownells’ commitment to honoring and supporting those who serve our country is well-known. This gift helps us to take injured service members into a naturally therapeutic environment — the American Outdoors — and allows them to escape the hospital setting,” said Freedom Alliance president Tom Kilgannon.
Brownells also contributes to other veterans and injured veterans support organizations, including the Special Operations Wounded Warriors, American Legion, Veterans of Foreign Wars, Disabled American Veterans and the NRA Life of Duty.
ATA Signs Seven-Year Show Agreement
The Archery Trade Association (ATA) has signed a deal with the city of Indianapolis to hold its annual show at the city’s Indiana Convention Center for seven out of the next nine years, exclusive of 2016 and 2019.
Surveys of ATA members found 70 percent of attendees drive to the show, and Indianapolis is the most convenient location for the majority of them.
“It’s an honor to have ATA meeting in our city, and we are proud to host this growing event for years to come,” said Indianapolis Mayor Greg Ballard.
“Indy and ATA have a long and rich history together, and are a great fit. We’re going to do whatever we can to make Indy the permanent home of the annual Trade Show,” said Leonard Hoops, Visit Indy president and CEO.
According to ATA, the renovated Indiana Convention Center, with its large, open floor space, allows ATA flexibility not available in many locations. In 2015, ATA will use 474,000 square feet of the center for booth space. The main show floor will include a retailer and exhibitor food court and lounge, the Featured Products section and three Business Hub locations.
USA Today has named Indianapolis “America’s Best Convention City.” The Convention Center connects to 4,700 hotel rooms and many convenient dining options.
“In Indy, show attendees can arrive at their hotel, remove their jacket and not need it again until they head home,” said Jay McAninch, ATA president and CEO. “Indy’s high-density food options increase opportunities for a more successful show by keeping conversations alive after the show floor closes.”
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