Today is Wednesday, April 16, 2014rss RSS feed
ATK

ATK

MINNEAPOLIS, Minn -(Ammoland.com)- — ATK (NYSE: ATK) announced it has entered into an agreement to acquire Caliber Company, the parent company of Savage Sports Corporation.

Savage is one of the world’s largest manufacturers of hunting rifles and shotguns, delivering innovative products for more than 100 years.

The acquisition would expand ATK’s portfolio offering by adding long guns to its leading brands in commercial and security ammunition, shooting sports and security-related accessories. The transaction is subject to regulatory approvals and customary closing conditions. ATK anticipates closing the transaction in the first quarter of its Fiscal Year 2014 (FY14), which ends June 30, 2013.

Under the terms of the transaction, ATK will pay $315 million in cash, subject to a customary working capital adjustment. This represents a trailing twelve months ended March 31, 2013 EBITDA multiple of approximately 5.5 times (unaudited). ATK believes the acquisition will be accretive to FY14 earnings per share. ATK will finance the acquisition with cash on hand and funds available under its existing credit facility.

“The acquisition will complement ATK’s growing portfolio of leading consumer brands,” said Mark DeYoung, ATK President and CEO. “This opportunity will allow us to build upon our offerings with Savage’s prominent, respected brands known for accuracy, quality, innovation, value and craftsmanship. Savage’s sales distribution channels, new product development, and sophistication in manufacturing will significantly increase our presence with a highly relevant product offering to distributors, retailers and consumers.”

Savage Arms

Savage Arms

Operating under the brand names of Savage Arms, Stevens, and Savage Range Systems, the company designs, manufactures and markets centerfire and rimfire rifles, shotguns and shooting range systems used for hunting as well as competitive and recreational target shooting. The company was organized in 1894 by Arthur Savage and has expanded into market-leading positions. Savage is located in Westfield, Mass. and Lakefield, Ontario, and employs approximately 600 skilled employees.

“Savage offers customers a unique value proposition that is unmatched by any other firearms manufacturer and will be a tremendous complement to ATK’s existing ammunition and shooting accessories portfolio,” said Al Kasper, Savage President and Chief Operating Officer.

ATK will integrate Savage within its Sporting Group business. ATK’s Sporting Group is the established leader in sporting and law enforcement ammunition and shooting accessories. ATK’s ammunition brands include Federal Premium, CCI, Fusion, Speer, Estate Cartridge and Blazer. ATK’s accessories brands include BLACKHAWK!, Alliant Power, RCBS, Champion targets and shooting equipment, Gunslick Pro and Outers gun-care products, and Weaver optics and mounting systems.

Caliber Company has been a portfolio company of Norwest Equity Partners (NEP), a leading middle market equity investment firm, since January 2012. NEP is headquartered in Minneapolis, Minn.

ATK is an aerospace, defense, and commercial products company with approximately 15,000 employees and operations in 21 states, Puerto Rico, and internationally. ATK is headquartered in Arlington, Va. News and information can be found on the Internet at www.atk.com, on Facebook at www.facebook.com/atk, or on Twitter @ATK.

Ammoland Click to read AmmoLand FTC Marital Disclosures Distributed to you by - AmmoLand.com – The Shooting Sports News source.
  • 4 User comments to “ATK to Acquire Caliber Company, Parent Company of Savage Arms”

    1. Jason B on May 14, 2013 at 2:23 PM said:

      Am I the only one who sees this as a bad thing? Savage builds affordable and reliable guns for we the people. ATK is another giant corporation that absorbs all the other companies/competition in its field and is beholden to our perfectly sane and stable government who’s only concern is keeping us safe by taking our guns so we don’t shoot each other and keeping us locked in a cages so we cannot hurt ourselves by running with scissors. ATK already has CCI, Speer, Federal, and the former ordinance branch of Boeing to go along with all the other divisions they have that basically do nothing but build weapon components for the US Gov. From Wiki “On March 12, 2012 ATK announced that it was awarded an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement from the United States Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) for .40 caliber ammunition. This contract has a base of 12 months, includes four option years, and will have a maximum volume of 450 million rounds of hollow point bullets”. Because you know that DHS needs that much ammo to control us, oops, I mean keep us safe. I wonder how many politicians own stock in ATK? When I read this all I think is that the headline should have read “Savage Arms will now be under control of the US Government”. Ask anyone who grew up on a farm about how much better off we are now that corporation’s have the food industry locked down.

    2. Jason, I agree with you! I have never seen a corporation that truly cares about (1) It’s employees, and (2) the products they make. All they care about is making money for their shareholders (which is ok), but I would not trust them as far as I can throw them. Furthermore, what would it take for this company who has no allegiance to anyone and could through us under the bus?

      Its too bad Savage has gone down this road for money.

    3. Robby777 on May 15, 2013 at 1:31 AM said:

      From many recent reports about ATK, I don’t think it was a good idea. Guess we’ll have to wait and see.

    4. Ranchman on May 16, 2013 at 11:05 PM said:

      Isn’t ATK owned by a friend of either George Soros or another anti-gunner? Was ATK not mentioned lately in an article that said it was possible they were buying up ammunition and gun manufacturers so they could then possibly just shut down operations of their companies, shutting off the supply of guns & ammo to the public? Was it ATK or another umbrella company buying up guns & ammo companies? If so, I’d hate to see Savage be bought by them. I really love my Savage model 10 FCP. I’d hate to see them be so blind as to think only of money and not their loyal customers who brought them to where they’re at today.

    Leave a Comment

    • Sign up Ammoland for your Inbox

      Daily Digest

      Monthly Newsletter

    • Recent Comments

      • Carl Stevenson: Corrupt judges, appointed by corrupt politicians … Don’t expect to win by relying on...
      • Dave from San Antonio: “Smart Guns”…digital and micro-chips. Nice idea…they can “shut...
      • Dave from San Antonio: About the only way to find out who owns these “illegal” guns will be to enlist...
      • MB: Sure, that’s a nice knife….I like knives. I’d rather see the ivory ON THE ELEPHANT
      • larry gay: lived in Dallas Texas 20 years never got to hog hunt but love watching pigman and love the new show, great...
    • maximum
      Login with Facebook: Log In
      Powered by Sociable!
    • Facebook Activity

    • Google+ Direct Connect

    Copyright 2014 AmmoLand.com Shooting Sports News | Sitemap | Μολὼν λαβέ

    Sign up for the Ammoland Daily Digest

    * indicates required
    Daily Digest is a daily recap of Firearms industry news, 2nd Amendment politics , and product articles delivered to the inbox. Stay informed to keep your Individual Right to Keep and Bear Arms.
    Yes, I want the Monthly email newsletter subscription to Ammoland so I can get a single newsletter once a month on the hot new products from the Firearms Industry!
    8850088
    9359632