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...