What’s the next best thing to a stockpile of gleaming, freshly-loaded ammo? How about a movie showing gleaming, freshly-loaded ammo being made — from start to finish? The five-minute video below shows the ammunition production process at the Lake City Army Ammunition Plant in Independence, Missouri. Lake City is the largest producer of small arms ammunition for the U.S. military, producing roughly four MILLION small-caliber rounds every day.
This promotional video does go overboard at times (too many smiling employees gushing about quality control). Still, it is fascinating to watch the process of creating cartridges — from the drawing (or extrusion) of raw brass into casings to the placement of projectiles and primers.
Quick History of Lake City Ammunition Plant Lake City Army Ammunition Plant (LCAAP) is a 3,935-acre government-owned, contractor-operated facility in Independence, Missouri that was established by Remington Arms in 1941 to manufacture and test small caliber ammunition for the U.S. Army. The facility has remained in continuous operation except for one 5-year period following World War II. Remington Arms operated the plant from its inception until 1985. Then Winchester took over the facility from 1985-2000.
Prior to its acquisition by Northrup Grumman in 2018, Orbital-ATK ran the plant since late 2000, initially as Alliant Techsystems (ATK). Recently Olin Corporation announced that its ammunition division, Olin Winchester, LLC, has been selected by the U.S. Army to operate and manage the Lake City Army Ammunition Plant for the next seven years — Winchester will assume full operational control of the Lake City plant on October 1, 2020.
What’s the next best thing to a stockpile of gleaming, freshly-loaded ammo? How about a movie showing gleaming, freshly-loaded ammo being made — from start to finish? The five-minute video below shows the ammunition production process at the Lake City Army Ammunition Plant in Independence, Missouri. Lake City is the largest producer of small arms ammunition for the U.S. military, producing roughly four MILLION small-caliber rounds every day.
This promotional video does go overboard at times (too many smiling employees gushing about quality control). Still, it is fascinating to watch the process of creating cartridges — from the drawing (or extrusion) of raw brass into casings to the placement of projectiles and primers.
Quick History of Lake City Ammunition Plant Lake City Army Ammunition Plant (LCAAP) is a 3,935-acre government-owned, contractor-operated facility in Independence, Missouri that was established by Remington Arms in 1941 to manufacture and test small caliber ammunition for the U.S. Army. The facility has remained in continuous operation except for one 5-year period following World War II. Remington Arms operated the plant from its inception until 1985. Then Winchester took over the facility from 1985-2000.
Prior to its acquisition by Northrup Grumman in 2018, Orbital-ATK ran the plant since late 2000, initially as Alliant Techsystems (ATK). Recently Olin Corporation announced that its ammunition division, Olin Winchester, LLC, has been selected by the U.S. Army to operate and manage the Lake City Army Ammunition Plant for the next seven years — Winchester will assume full operational control of the Lake City plant on October 1, 2020.
Big News in the ammo industry! At the Lake City Army Ammunition Plant, Northrup Grumman is out, and Winchester is taking over.
Olin Corporation (NYSE: OLN) announced that its ammunition division, Olin Winchester, LLC (“Winchester”), has been selected by the U.S. Army to operate and manage the Lake City Army Ammunition Plant in Independence, Missouri. Winchester will be taking over in the fall of 2020. Winchester’s Lake City contract has an initial term of seven years and may be extended for up to three more years, which would put Winchester in charge of the plant for a full decade.
Prior to its acquisition by Northrup Grumman in 2018, Orbital-ATK ran the plant since 2000, initially as Alliant Techsystems (ATK). Before that, Winchester previously operated the Lake City facility from 1985-2000, so Winchester knows this facility. Following a one-year transition period, Winchester will assume full operational control of the Lake City plant on October 1, 2020.
The Lake City plant, which began production in 1941, is the primary provider of small-caliber U.S. military ammunition for training and combat use. The plant produces as many as 2 billion rounds per year. The plant, encompassing nearly 4,000 acres, also serves as a national and regional test center for ammunition performance and weapons firing.
Orbital-ATK Was Losing Millions at Lake City in Recent Years
The Lake City contract was a huge financial problem for Orbital ATK, now a division of Northrup Grumman. Orbital ATK was losing money on its plant contract, due to the high cost of materials. KCRU.org reported:
“Orbital ATK, the defense contractor that ran the Lake City facility from 2000 until it was bought [in 2018] by Northrop Grumman, stunned investors on August 10, 2016, when it announced it wouldn’t be able to file its quarterly earnings report on time. Orbital ATK stock plummeted more than 20%. Institutional investors… filed a class-action lawsuit alleging the company fraudulently hid the fact it was losing hundreds of millions of dollars on its massive, multi-year Army contract. [Orbital ATK] eventually said it expected to lose $373 million on the contract.”
About Orbital-ATK and Alliant Techsystems: Before it split into two companies, Orbital-ATK and Vista Outdoor, Alliant Techsystems (ATK) was the parent company of numerous major gun industry brands, including: Alliant Powder, CCI, Champion, Federal, RCBS, Speer, and Weaver. These brands are still operated by Vista Outdoor.
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Based on its external appearance, a modern riflescope may seem simple. It’s just a tube with two or three knobs on the outside right? Well, looks can be deceiving. Modern variable focal-length optics are complex systems with lots of internal parts. Modern scopes, even ‘budget’ optics, use multiple lens elements to allow variable magnification levels and parallax adjustment. We had a chance to look inside a riflescope thanks to a product display from ATK, parent of Alliant Powder, CCI, Federal, RCBS, Speer, Weaver Optics. ATK sliced open a Weaver Super Slam scope so you can see the internal lens elements plus the elevation and windage controls. We thought readers would like to see the “inner workings” of a typical modern rifle scope, so we snapped some pictures. The sectioned Super Slam scope was mounted inside a Plexiglas case, making it a bit hard to get super-sharp images, but you can still see the multiple lenses and the complex windage and elevation controls.
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What’s the next best thing to a stockpile of gleaming, freshly-loaded ammo? How about a movie showing gleaming, freshly-loaded ammo being made — from start to finish? The five-minute video below shows the ammunition production process at the Lake City Army Ammunition Plant, a division of ATK. Lake City is the largest producer of small arms ammunition for the U.S. military, producing roughly four MILLION small-caliber rounds every day.
This promotional video does go a bit overboard at times in a self-congratulatory sense. But the video is definitely worth watching — it is fascinating to watch the process of creating cartridges — from the drawing (or extrusion) of raw brass into casings to the placement of projectiles and primers.
Quick History of Lake City Ammunition Plant Lake City Army Ammunition Plant (LCAAP) is a 3,935-acre government-owned, contractor-operated facility in Independence, Missouri that was established by Remington Arms in 1941 to manufacture and test small caliber ammunition for the U.S. Army. The facility has remained in continuous operation except for one 5-year period following World War II. As of July 2007, the plant produced nearly 1.4 billion rounds of ammunition per year. Remington Arms operated the plant from its inception until 1985, when operations were taken over by Olin Corporation. From April 2001 through the present, it has been operated by Alliant Techsystems (ATK), which in February 2015 split into two separate companies, Orbital ATK and Vista Outdoors.
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Shoot 101 Quiz
Vista Outdoors (formerly ATK Sporting Group) has launched a new multi-platform media campaign called Shoot 101. Combining print, web, and television, Shoot 101 provides “how to” information about shooting, optics, and outdoor gear.
On the Shoot 101 website, you’ll find a Ballistics Quiz. The questions are pretty basic, but it’s still fun to see if you get all the answers correct.
You don’t need a lot of technical knowledge. Roughly a third of the questions are about projectile types and bullet construction. Note, for some reason the layout doesn’t show all the possible answers at first. So, for each question, be sure to scroll down using the blue scroll bar on the right.
You may not have heard of Vista Outdoor (NYSE: VSTO), but you’ll know many of the brands under its corporate umbrella: Alliant Powder, Blackhawk, Bolle, Bushnell, CCI, Federal Premium, Outers, RCBS, Savage Arms, Simmons, Speer, Weaver. To learn more about Vista Outdoor’s operations and products, visit www.vistaoutdoor.com or Vista Outdoor’s Facebook Page.
So what is Vista Outdoor? This corporate giant used to be the sporting division of ATK (Alliant Techsystems*). In February of this year, ATK split into two separate companies. The outdoor sports/hunting/shooting brands (with annual revenues of $2.3 billion) were consolidated into Vista Outdoor. The aerospace/military contract operations of ATK were continued in a second company, Orbital ATK. Vista Outdoor, now head-quartered in Clearfield, Utah, is a standalone, publicly-traded outdoor sports and recreation company with approximately 5,800 employees worldwide.
In a recent interview with GearJunkie.com, Vista Outdoor’s Chairman/CEO Mark DeYoung revealed that Vista Outdoor will release scores of new products in 2015:
Q: Looking ahead for this year, what to-be-released products are you most excited about?
A: Bushnell has a rangefinder for golf that is innovative. We introduced it at the PGA Show. The A17 rifle from Savage is big news — we sold out of a whole year’s capacity at the SHOT Show. Overall, there are about 130 new products coming this year from our brands[.]
Vista Outdoor Started Trading as VSTO on February 10, 2015
Vista Outdoor “went live” as a separate, publicly-traded company on the New York Stock Exchange on February 10, 2015. Here is the official press release:
Vista Outdoor Inc. (NYSE: VSTO), which previously operated as the Sporting Group of Alliant Techsystems Inc. (“ATK”), announced today the successful completion of its spin-off from ATK (NYSE: ATK) into a standalone, publicly traded outdoor sports and recreation company.
On February 9, 2015, ATK distributed to its stockholders two shares of Vista Outdoor common stock for every share of ATK common stock held as of record on February 2, 2015. Vista Outdoor common stock will begin “regular-way” trading under the symbol “VSTO” on the New York Stock Exchange (“NYSE”) today, February 10, 2015, when markets open.
“Today marks the creation of a new leading commercial and consumer-products company focused on innovative solutions, strategic customer partnerships, execution excellence and creating long-term shareholder value,” said Mark DeYoung, Vista Outdoor Chairman and Chief Executive Officer. “Our consumers depend on our products to deliver quality and performance in a variety of outdoor environments and activities. Our mission is to bring the world outside, and to support and facilitate the success of outdoor enthusiasts as they strive to achieve their own rugged independence.”
About Vista Outdoor Inc.
Vista Outdoor is a leading global designer, manufacturer and marketer in the growing outdoor sports and recreation markets. The company operates in two segments, Outdoor Products and Shooting Sports, and has more than 30 well-recognized brands that provide consumers with a wide range products in the ammunition, firearms and outdoor accessories categories. Vista Outdoor is headquartered in Utah and has manufacturing operations and facilities in 10 U.S. States, Puerto Rico, Mexico and Canada.
*Alliant Techsystems Inc. (ATK) came into being as an independent company in 1990 when Honeywell spun off its defense businesses to shareholders. ATK got into the ammo business in 2001 when it acquired Blount International. ATK grew with later acquisitions of Weaver Optics (2008), Blackhawk (2010), Savage Arms (2013), and Bushnell (2013).
Story tip by EdLongrange. We welcome reader submissions.
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Where did all the .22 LR ammunition go? Why are the prices so high? Why can’t the rimfire ammo-makers step up production? Across the country, firearm owners are asking these questions, and demanding answers.
Part of the explanation comes down to production capacity. America’s rimfire ammo production facilities are already running at full capacity. There is no easy way in increase production. In the video below, the crew from Shooting USA Television visits the ATK production facility in Lewiston, Idaho. This plant can produce 4,000,000 rounds of CCI rimfire ammo in one 24-hour period. This informative video shows the complete process of rimfire ammunition production from start to finish.
This is a ‘must-watch’ video that reveals some very interesting things. Did you know that 1200 cases (in one large tray) are filled with powder in a single operation? (See 05:45 mark). Likewise, bullets are also lined up in a matching 1200-count tray (See 6:00 mark). This way 1200 bullets can be seated into 1200 rimfire cases in one efficient procedure.
When you watch the video, and see the complex, expensive machinery involved, you’ll realize that it’s no easy thing to increase rimfre ammo production. The rimfire plants are already running at full capacity. To produce significantly greater quantities of .22 LR ammunition, manufacturers would have to make huge capital investments.
Alliant Techsystems (ATK or Alliant) is merging its aerospace/defense operations with Virginia-based Orbital Sciences. At the same time, ATK plans to spin off its sporting arms, ammo, and outdoor gear operations into a separate, stand-alone business. ATK sells sporting products under numerous brands including Alliant Powder, Blackhawk, Bushnell, CCI, Champion, Federal Premium, RCBS, Savage Arms, Speer, and Weaver Optics. The new Alliant sporting business will operate from Utah, while the merged Orbital-ATK aerospace business will be managed from Virginia.
According to the Washington Post: “The separation of ATK’s core segments gives it the opportunity to focus on its sporting goods sector, which has grown to a $2.2 billion business through several mergers and acquisitions over the past decade. The company manufactures commercial sporting equipment for hunters, shooters and law enforcement agencies.”
The announced merger of Alliant and Orbital, and the spin-off of the sporting business, should benefit Alliant shareholders. Alliant shares rose 8% yesterday. Alliant shareholders will own 53.8% of the new Orbital-ATK aerospace company, and Alliant shareholders will retain full ownership of the new spin-off sporting enterprise. Alliant’s current CEO and president, Mark DeYoung, will take over as chairman and CEO of the new sporting business.
Will the new Alliant Sporting operation continue to grow? Analysts believe that it will. Management has shown interest in building the company via more sporting industry acquisitions. Analysts believe the Alliant sporting division is poised for continued expansion. While Alliant’s aerospace operations have suffered in recent years from cuts in defense spending, the sporting division has seen impressive revenue growth.
According to StarTribune.com: “The sporting unit’s rocket-like growth has captured the attention of Wall Street analysts. Barclays Capital analyst Carter Copeland recently boosted his forecast on Alliant, noting that “over time … the sporting group has made a more significant portion of the total company’s sales and earnings. … The last seven quarters the business has posted average organic growth on a year-over-year basis of 23 percent.”
For those in the shooting community, the spin-off of ATK’s sporting operations is probably a good thing. The new company can focus on guns, ammo, and outdoor accessories, rather than aerospace programs with long development cycles. Likewise the new company should be more responsive to consumers, as it can adjust production to current market demands, rather than fixed government defense contracts. ATK officials stated that “the company’s Sporting and Aerospace/Defense businesses operate in two fundamentally different markets with very different operating dynamics, compliance requirements, customer sets and growth opportunities. As standalone companies, they will be more focused businesses, with clear and distinct strategic visions and objectives, additional operational flexibility and the financial strength to make the most of their unique opportunities in their respective industries.”
Under the terms of the transaction agreement, ATK will distribute ownership of Sporting to ATK shareholders in a spin-off transaction, following which, ATK shareholders will own 100 percent of Sporting. The spin-off will be immediately followed by a merger of Orbital with a subsidiary of ATK, with Orbital surviving the merger and becoming a wholly owned subsidiary of ATK. In connection with the merger, Orbital shareholders will receive 0.449 shares of ATK common stock for each share of Orbital common stock that they hold. Upon the closing of the merger, ATK shareholders will own approximately 53.8 percent of the combined company on a fully diluted basis and Orbital shareholders will own the remaining approximately 46.2 percent of the combined company on a fully diluted basis.
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Why is ammo in short supply? Quite simply because Americans are buying ammunition (and reloading supplies) like never before, grabbing everything that comes off the production line. Consider this, ATK (NYSE:ATK), which owns Alliant Powder, CCI, Federal, RCBS, Bushnell, Savage and many other gun industry brands, reported a huge increase in revenues, mostly due to increased ammo sales.
ATK reported that second-quarter sales in its Sporting Group — which includes ammunition as well as optics, reloading gear and sport-shooting and tactical accessories — were up 48 percent to $421 million compared to $284 million in the same period last year. The company said the increase in sales was driven by higher volume in ammunition, sales from Savage of $57 million, and a previously announced ammunition price increase. ATK reported that its overall net income for the quarter was up 42 percent. Counting both military and civilian (Sporting Group) production, ATK produces over 6.5 Billion rounds of ammunition every year. Yep, that’s “B” as in Billion. That includes everything from .22 rimfire up to tank ammo.
$387,000,000 of Ammo for the Military
In related news, ATK announced that it has received orders for approximately $387 million for ammunition to be produced at its Lake City Army Ammunition Plant. The orders fall under the plant’s new production contract, which began Oct. 1, 2013, and include a mix of 5.56mm, 7.62mm and .50-caliber high-quality military ammunition.
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It’s official — ATK is acquiring Bushnell — for a whopping $985 million. ATK (Alliant Techsystems) has executed a definitive agreement to acquire Bushnell Group Holdings, Inc., a leading maker of branded sports optics, outdoor accessories, and eyewear. In addition to rifle scopes, Bushnell makes rangefinders, binoculars, spotting scopes, GPS units, sunglasses, and more. Bushnell sells a myriad of other products for outdoorsmen through its brands Simmons, Tasco, Millet, Butler Creek, Bollé, Serengeti, Hoppe’s, Night Optics, Primos, Stoney Point, Hoppe’s, and Uncle Mike’s.
Under the terms of the transaction, ATK will pay $985 million in cash, subject to customary post-closing adjustments. Bushnell’s projected sales for calendar 2013 are approximately $600 million. ATK will finance the acquisition through a combination of $900 million of secured financing, borrowings under its existing revolving credit facility, and cash on hand. The transaction is subject to regulatory approvals and customary closing conditions. ATK anticipates closing the transaction in the third or fourth quarter of its Fiscal Year 2014.
Mark DeYoung, ATK President and CEO states: “This [Bushnell] acquisition will broaden our existing capabilities in the commercial shooting sports and expand our portfolio of branded shooting sports products. In addition, this transaction will allow the company to effectively enter new sporting markets in golf, snow skiing and camping.”
Bushnell markets 19 outdoor brands in sports optics, outdoor accessories and performance eyewear, including the Bushnell brand and other notable brands such as Primos, Bollé, Hoppe’s, Uncle Mike’s, Butler Creek, and Serengeti. Founded in 1948, Bushnell is headquartered in Overland Park, Kansas and employs approximately 1,100 workers worldwide.
Bushnell Will Become Part of ATK’s Sporting Group of Companies
ATK will integrate Bushnell into its Sporting Group within its existing accessories business. ATK Sporting Group’s ammunition brands include Federal Premium, CCI, Fusion, Speer, Estate Cartridge and Blazer. ATK’s accessories brands include Alliant Powder, RCBS, Weaver Optics, BLACKHAWK!, Champion, Outers, and Gunslick Pro. In June 2013, ATK acquired Savage Sports Corporation, adding centerfire and rimfire rifles, shotguns and shooting range systems used for hunting, competitive and recreational shooting to its product offering.
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ATK (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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What’s the next best thing to a stockpile of gleaming, freshly-loaded ammo? How about a movie showing gleaming, freshly-loaded ammo being made — from start to finish? The five-minute video below shows the ammunition production process at the Lake City Army Ammunition Plant in Independence, Missouri. Lake City is the largest producer of small arms ammunition for the U.S. military, producing roughly four MILLION small-caliber rounds every day.
Big News in the ammo industry! At the Lake City Army Ammunition Plant, Northrup Grumman is out, and Winchester is taking over.
What’s the next best thing to a stockpile of gleaming, freshly-loaded ammo? How about a movie showing gleaming, freshly-loaded ammo being made — from start to finish? The five-minute video below shows the ammunition production process at the Lake City Army Ammunition Plant, a division of ATK. Lake City is the largest producer of small arms ammunition for the U.S. military, producing roughly four MILLION small-caliber rounds every day.
Shoot 101 Quiz
Where did all the .22 LR ammunition go? Why are the prices so high? Why can’t the rimfire ammo-makers step up production? Across the country, firearm owners are asking these questions, and demanding answers.
The announced merger of Alliant and Orbital, and the spin-off of the sporting business, should benefit Alliant shareholders. Alliant shares rose 8% yesterday. Alliant shareholders will own 53.8% of the new Orbital-ATK aerospace company, and Alliant shareholders will retain full ownership of the new spin-off sporting enterprise. Alliant’s current CEO and president, Mark DeYoung, will take over as chairman and CEO of the new sporting business.
Why is ammo in short supply? Quite simply because Americans are buying ammunition (and reloading supplies) like never before, grabbing everything that comes off the production line. Consider this, 
It’s official — ATK is acquiring Bushnell — for a whopping $985 million. ATK (Alliant Techsystems) has executed a definitive agreement to acquire Bushnell Group Holdings, Inc., a leading maker of branded sports optics, outdoor accessories, and eyewear. In addition to rifle scopes, Bushnell makes rangefinders, binoculars, spotting scopes, GPS units, sunglasses, and more. Bushnell sells a myriad of other products for outdoorsmen through its brands Simmons, Tasco, Millet, Butler Creek, Bollé, Serengeti, Hoppe’s, Night Optics, Primos, Stoney Point, Hoppe’s, and Uncle Mike’s.
