MINNEAPOLIS---ATK said it has signed a definitive agreement to acquire the ammunition and related products business of Blount International, Inc., Montgomery, Ala. in exchange for approximately $250 million of ATK stock.
Blount International, Inc. is 85% owned by affiliates of Lehman Brothers. The company's ammunition business manufactures small-caliber ammunition and other products, and is one of the country's leading suppliers of law enforcement ammunition. The transaction, which is subject to regulatory approvals, is expected to close during ATK's third quarter, however, there can be no assurance that the transaction will be completed within that time frame, or at all.
The acquired business is expected to generate approximately $50 to $65 million in additional sales in the current fiscal year, which increases our expectations for total sales in the current fiscal year to between $1.695 and $1.730 billion. In fiscal 2003, the acquired business is expected to generate sales of approximately $250 to $275 million, which increases our expectations for total sales in fiscal 2003 to $2 billion.
We now expect earnings from continuing operations for the current fiscal year to be at the high end of our previous estimate of $3.60 to $3.63 per share, excluding extraordinary charges due to the write off of deferred financing costs. For fiscal 2003, our expectation for earnings from continuing operations is now raised to between $4.17 and $4.21 per share, excluding extraordinary charges due to the write off of deferred financing costs.
ATK is a $1.7 billion aerospace and defense company with leading positions in propulsion, composite structures, munitions, and precision capabilities. The company, which is headquartered in Edina, Minn., employs approximately 9,400 people and has two business groups: Aerospace and Defense.
ATK Signs Definitive Agreement To Acquire Ammunition Business Of Blount International, Inc.