ATK To Acquire Bushnell Group For $985 Mln In Cash - Update

(RTTNews) - Alliant Techsystems Inc. (ATK) Thursday said it has entered into a definitive agreement to acquire outdoor consumer-branded products provider Bushnell Group Holdings Inc for $985 million in cash. ATK anticipates closing the deal in the third or fourth quarter of its fiscal year 2014.

ATK expects the acquisition to be accretive to earnings per share in its first full year of operations, including impacts associated with transition expenses. The firm also estimates earnings per share accretion of about $1.00 in fiscal 2016.

ATK said it expects the acquisition to result in fiscal 2014 earnings per share dilution due to the stub period, transaction expenses and purchase accounting.

According to the company, the consideration represents a projected calendar 2013 EBITDA multiple of nearly 10 times. Bushnell's projected sales for calendar 2013 are around $600 million.

Bushnell designs, markets and distributes branded sports optics, outdoor accessories and performance eyewear. ATK said the acquisition will expand its product offerings into key growth areas. ATK plans to integrate Bushnell into its Sporting Group within its existing accessories business.

Founded in 1948, Overland Park, Kansas-headquartered Bushnell employs about 1,100 people. It is a portfolio company of MidOcean Partners, a premier middle-market, private equity firm headquartered in New York.

Mark DeYoung, president and CEO of ATK said, "The Bushnell acquisition is consistent with ATK's focus on establishing leadership positions in our core markets. This acquisition will broaden our existing capabilities in the commercial shooting sports and expand our portfolio of branded shooting sports products."

ATK stated that it will finance the acquisition through a combination of new financing, borrowings under its existing revolving credit facility, and cash on hand. As part of the deal, ATK has secured a $900 million senior secured acquisition financing commitment.

ATK closed Wednesday's regular trading at $97.21 on the NYSE.