Alliant Techsystems, Orbital Sciences Announce Creation Of Orbital ATK

(RTTNews) - Alliant Techsystems Inc. (ATK) Tuesday said its Board of Directors has unanimously approved a plan to create two independent, public companies with leadership in Outdoor Sports and Aerospace and Defense or A&D.

The board approved a definitive agreement that provides for the tax-free spin-off of the company's Sporting Group to ATK shareholders.

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

The transaction is expected to close by the end of calendar year 2014. Upon completion of the transaction, ATK will change its name to Orbital ATK, Inc.

Orbital shareholders will receive 0.449 shares of ATK common stock for each share of Orbital common stock that they hold.

Current ATK shareholders will own around 53.8 percent of Orbital ATK on a fully diluted basis and current Orbital shareholders will own about 46.2 percent. Approximately $1.7 billion of existing ATK debt will remain at Orbital ATK.

David Thompson, Orbital's Chairman, President and CEO, said, "By building on complementary technologies products and know-how and highly compatible cultures, Orbital ATK will deliver even more affordable space, defense and aerostructures systems to our existing customers and be well positioned to expand into adjacent markets."

Orbital said separately that it has entered into a definitive agreement with Alliant Techsystems, which would combine Orbital and ATK's A&D Groups to create a $4.5 billion, 13,000-person space, defense and aviation systems developer and manufacturer.

The new company will serve U.S. and international customers with leading positions in the markets for space launch vehicles and propulsion systems, tactical missiles and defense electronics, satellites and space systems, armament systems and ammunition, and commercial and military aircraft structures and related components.

As part of the transaction, ATK will spin off its Sporting Group, which focuses on commercial sporting equipment, to its shareholders.