Alliant spinoff, merger completed

Alliant Techsystems (ATK) spun off its sporting ammunition business Monday into a separate publicly held company renamed Vista Outdoor Inc.

With the spinoff completed, Alliant then merged its remaining defense and aerospace business with Virginia-based Orbital Sciences Corp. to form the new Orbital ATK Inc.

Alliant's sporting spinoff and the following Orbital merger were previously announced in April as a way to maximize the value of Alliant's sports ammunition business, while shoring up its defense and space capabilities during a time of government spending constraints. Officials said the two businesses had two very different markets and it was time to run the entities accordingly.

Alliant's ammunition products have been prized among hunters, law enforcement workers and security firms. Brands include Federal Cartridge, Bushnell and Savage Arms and Blackhawk. The ammunition business represented about 45 percent of Alliant's $4.4 billion in revenue for 2013.

In contrast, Alliant's defense and aerospace business was best known for making precision guided missiles and satellite parts — and for the rocket boosters that launched space shuttle astronauts into orbit for more than 20 years.

Under the terms of the merger, Orbital shareholders received 0.449 shares of the new Orbital ATK common stock for every share of Orbital.

As for the sporting business, ATK shareholders received two shares of every Vista Outdoor stock for every share of ATK common stock held as of Feb. 2.

The new Orbital ATK will be based in Dulles, Va. It has 12,500 employees in 20 states.

Alliant Techsystems was based in Eden Prairie until 2011, when it relocated its corporate headquarters to Arlington, Va. About 200 employees remain in Eden Prairie. They will stay and become part of the new Orbital ATK, said spokeswoman Amanda Covington.

A handful of workers have moved from Eden Prairie to Anoka, which is where the old Alliant Techsystems ran its Federal Cartridge ammunition factory.

That facility has become part of the new Vista Outdoor Inc. An executive corporate office is being created within the Anoka facility to house Vista Outdoor officials doing business in the Midwest, Covington said.

Orbital ATK will have $4.5 billion in annual revenue and $585 million in annual profits before taxes. The company expects $70 million to $100 million in cost-reduction synergies by 2016.