Consistent with its objective of expanding product offerings in the commercial shooting sports and related markets, Alliant Techsystems (NYSE: ATK ) has signed a definitive agreement to acquire sport optics and outdoor accessories provider Bushnell Group for $985 million, ATK said today.
According to ATK's statement, the deal for Bushnell would add "a comprehensive product offering in commercial and security ammunition, sporting arms and accessories," in addition to opening the door to the skiing, golf, and camping markets.
ATK said it will finance the deal using a recently secured $900 million senior secured financing commitment, in addition to utilizing its existing revolving credit line and cash on hand. The transaction is expected to be accretive by fiscal year 2015, and add as much as $1 per share to earnings by fiscal 2016, according to ATK.
Mark DeYoung, president and CEO of ATK, commented in the company press release, "ATK will leverage Bushnell's strong sourcing, marketing, branding and distribution capabilities and capitalize on Bushnell's track record of successfully integrating acquisitions and delivering profitable growth."
The acquisition is expected to close in the third or fourth quarter of ATK's fiscal 2014, and is subject to customary closing conditions. The company's fiscal year ends March 31.
In May, ATK announced plans to acquire Caliber Co., the parent company of Savage Sports.