ATK (NYSE: ATK) announced today that it has completed the acquisition of 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.
"Savage has an outstanding reputation in the hunting and shooting sports industry, and we are pleased we can now include Savage as one of ATK's highly recognized sporting brands," said Mark DeYoung, ATK President and CEO. "ATK is committed to delivering affordable innovation to its customers, and this acquisition offers a great opportunity to expand our world leadership in sporting and security ammunition and accessories into the long guns market."
Savage's revenues for the trailing twelve months ended March 31, 2013, were approximately $200 million (unaudited). ATK believes the acquisition will be accretive to FY14 earnings per share. ATK financed the acquisition with cash on hand and funds available under its existing credit facility.
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 the workforce includes approximately 600 skilled employees. ATK did not acquire Savage's BowTech Archery brand.
"Savage has been delivering customers high-quality firearms for more than 100 years," said Al Kasper, Savage President and Chief Operating Officer. "We're proud to continue that legacy under the ATK Sporting Group umbrella, and we know Savage's products will be a natural complement to ATK's existing hunting and shooting sports ammunition and accessories 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 had been a portfolio company of Norwest Equity Partners (NEP), a leading middle market equity investment firm, since January 2012.
Source: Alliant Tech Systems, Inc (ATK) (NYSE: ATK)
Date: Jun 24, 2013