August 6th, 2013

ATK in Negotiations to Acquire Bushnell Outdoor Products

ATK Bushnell acquisitionATK (Alliant Techsystems Inc.), already a giant conglomerate, may soon get even bigger. Reuters reports that ATK “is in advanced talks to buy Bushnell Outdoor Products Inc. in a deal that could value the gun accessory maker at around $1 billion[.]” In addition to scopes, Bushnell makes rangefinders, binoculars, GPS units. Bushnell sells a myriad of other products for outdoorsmen through its brands Butler Creek, Hoppe’s, Millett, Night Optics, Primos, Simmons, Stoney Point, Tasco and Uncle Mike’s.

According to Reuter’s sources, ATK is engaged in high-level negotiations with MidOcean Partners, a holding company that currently controls Bushnell. Reuters cautioned that “a deal has not yet been finalized and negotiations could still fall apart”.

If the Bushnell deal goes through, this will be the second major acquisition for ATK in the past few months. In May 2013, ATK paid $315 million for Caliber Company, the parent company of Savage Sports Corporation which runs Savage Arms and Stevens. Savage is being integrated into ATK’s Sporting Group business which includes Federal Premium, Alliant Powder, CCI, RCBS, Speer, Weaver Optics, Champion Targets, and other outdoor sports brands.

ATK is also a major defense contractor, producing ammunition, weapons systems, aerospace products and much more. Currently valued at $3.1 Billion, ATK has been a top performer on Wall Street recently. ATK shares have more than doubled in the past 12 months, outpacing most stocks, even in a rapidly rising overall market. ATK shares were trading at $97.53 today, compared to $47.24 one year ago.

Bushnell was founded in 1948. The company makes scopes, binoculars, GPS units, laser rangefinders, GameCams, eyewear, and other outdoor gear. Bushnell is the parent of many other outdoor product brands, including: Bollé, Butler Creek, Final Approach, Hoppe’s, Millett, Night Optics, Primos, Serengeti, Simmons, Stoney Point, Tasco, and Uncle Mike’s. Last year the Bushnell group of companies had $100 million in earnings before taxes, interest, and depreciation.

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