Alliant Techsystems Inc. announced that its Board of Directors has unanimously approved a plan to create two independent, public companies with leadership in Outdoor Sports and Aerospace and Defense (A&D). The board approved a definitive agreement that provides for the tax-free spin-off of the Company's Sporting Group ("Sporting") to ATK shareholders. 

 

The spin-off will be immediately followed by a tax-free, all-stock merger between ATK's Aerospace and Defense Groups ("ATK A&D") and Orbital Sciences Corporation ("Orbital") (NYSE: ORB), pursuant to which Orbital shareholders will receive shares of ATK common stock as consideration. 

 

Upon completion of the transaction, ATK will change its name to Orbital ATK, Inc. ("Orbital ATK"). Current ATK shareholders will own approximately 53.8 percent of Orbital ATK on a fully diluted basis and current Orbital shareholders will own approximately 46.2 percent. Approximately $1.7 billion of existing ATK debt will remain at Orbital ATK.

 

ATK President and CEO Mark W. DeYoung says, "We are creating two strong, standalone companies committed to sustained leadership and success in their markets," said Mark W. DeYoung, President and Chief Executive Officer of ATK. "ATK's Board of Directors and management team continuously evaluate opportunities to best position the company to drive value for its shareholders. 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. 

 

“Orbital has been a customer of ATK for more than 25 years; we are familiar with each other and each company's capabilities, and our respective cultures share a commitment to innovation and excellence. This alignment provides a solid opportunity to deliver great products to our customers at affordable prices with the opportunity to capture significant synergies."

 

"The Board of Directors believes this plan provides a compelling opportunity for ATK to continue to deliver solid shareholder value and for both companies to excel in their respective businesses," said General Ronald R. Fogleman, USAF (Ret.), Chairman of ATK's Board of Directors. "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."

 

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