At the request of our readers, we provide select “Deals of the Week”. Every Monday morning we offer our Best Bargain selections. Here are some of the best deals on firearms, hardware, reloading components, and shooting accessories. Be aware that sale prices are subject to change, and once clearance inventory is sold, it’s gone for good. You snooze you lose.
Here’s a great deal if you’re looking for a GEN2 6.5 Creedmoor Ruger Precision Rifle for PRS events or other bolt-action tactical applications. The 6.5 Creedmoor is the hot ticket for this rifle, and RPRs with this chambering have been in short supply. You’ll find many sellers charging $1400.00+ for this rifle, if they have it at all.
This week you can get a GEN2 Ruger Precision Rifle in 6.5 Creedmoor for just $1168.01 from Kentucky Gun Company, with FREE Shipping to boot. The “Cash Price” price is even cheaper, $1133.99. And GunPrime.com also has the 6.5CM RPR for $1199.00 this week. Curious about the differences between the GEN2 Ruger Precision Rifle and the original Model? CLICK HERE for a complete spec comparison and a video (scroll down landing page).
2. Midsouth — Norma Tac-22 .22 LR Ammo, $3.99/box
This Norma .22 LR ammo shoots WAY better than you’d expect given the low price — just $3.99 per 50ct box at Midsouth. These test targets come from Champion Shooters Supply. That vendor reports: “We have found this to run very well in Ruger rifles, handguns, and target pistols. These are 5-shot groups at 50 yards with an Anschutz 1913 rifle. This is an incredible value.” We suggest you grab some of this Tac-22 while you can at these rock-bottom prices.
3. Natchez — Surplus SKB 5041 Transport Cases, $129.99
Natchez has obtained a supply of British MOD Surplus SKB 5041 rifle cases. These were ordered as mine detector cases, but were never issued. Natchez has removed the foam cut for the detectors and replaced it with new 2-piece convoluted foam. Interior dimension of the case is 50″x14.5″x5″ so this will hold long-barrel match rifles comfortably. These are extremely high-quality cases, very tough and rugged, waterproof with gaskets. These cases feature four SKB patented trigger latches, four reinforced padlock locations, and inline wheels. Though in excellent condition, some case may have minor exterior scuffs. You won’t find a better case at anywhere near the price. These normally retail for $299.99.
4. Sportsmans Outdoor — S&W M&P9 Shield, $239.99 after Rebate
Here’s an awesome deal on a popular Smith & Wesson 9mm carry pistol. The M&P9 Shield (with thumb safety) is priced at just $314.99 at Sportsmans Outdoor Superstore. But it gets better — Smith & Wesson is offering a $75.00 Rebate. That lowers your net cost to just $239.99. That’s half what you might pay for a similar 9mm Glock. Good reason to buy American, and S&W’s warranty is rock solid. NOTE: This same M&P9 pistol without thumb safety is offered by Brownells for $359.99, or $284.99 after mail-in rebate.
This is a very good spotting scope for the price. Yes it gives up some low-light performance to a spotter with an 80mm objective, but otherwise it is a good performer, and we can’t think of much that will touch this Vortex Diamondback spotting scope for anywhere near the $399.99 sale price. Choose from angled or straight version for the same $399.99 price, which includes the 20-60X zoom eyepiece.
6. Amazon — Frankford Arsenal Master Tumbler Kit, $67.99
This Master Tumbler Kit contains everything you need to tumble rifle or pistol brass. Now on sale for $67.99 with free shipping, this Kit contains: Vibratory Tumbler, Rotary Media Separator, Plastic Bucket, 3 lbs. Cleaning Media, and 4 oz. Brass Polish.
7. Powder Valley — Reloder 16 Powder, 1-pound and 8-pound
Powder Valley now has Alliant Reloder 16 (RL16) in stock in both 1-lb ($23.95) and 8-lb ($178.95) containers. If you’re not familiar with this relatively new propellant, we can tell you that RL16 may be the best replacement yet for hard-to-find Hodgdon H4350. Burn rate is very similar to H4350, and RL16 is extremely temp-stable. Most importantly, our Forum members are reporting outstanding accuracy with Reloder 16. It is well suited for mid-sized cartridges such as 6XC, 6mm Creedmoor, 6.5 Creedmoor, 6.5×47 Lapua, and .260 Remington. If you like H4350, we recommend you try a pound of Alliant’s impressive Reloder 16.
8. Monmouth Reloading — 500 Lake City 5.56 Cases, $35.00
500 pieces of Lake City brass for just thirty-five bucks? Yep, that’s a great deal for anyone who needs .223/5.56 brass for varmint safaris and tactical comps. Monmouth Reloading is selling genuine, once-fired Lake City 5.56x45mm brass sourced direct from the U.S. Military. NOTE: CLICK HERE and then select 500-ct pack — the 1000-ct is out of stock. Monmouth reports: “Our current stock of Lake City 5.56 looks to be all newer year Lake City head stamp but may contain a small percentage of other NATO headstamps. Lake City is a popular, reliable brass, normally capable of many reloads.” Monmouth includes 1% overage to account for any damaged brass. NOTE: Brass has crimped primers, so the pockets will need to be reamed or swaged prior to reloading.
9. Amazon — Howard Leight Electronic Muffs, $31.11
Every shooter should own a pair of Electronic muffs, even if you prefer shooting with earplugs and/or standard muffs. Electronic muffs are great when you are doing spotting duties or are working near the firing line. They allow you to hear ordinary conversations while still providing vital hearing protection. Right now Amazon.com has the Howard Leight Impact Sport Electronic Muffs on sale for just $31.11, with free Prime Shipping. This is good deal — these NRR 22 muffs are currently Amazon’s #1 seller in the category.
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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 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. 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. Since April 2001, it has been operated by Alliant Techsystems (ATK).
At the request of our readers, we have launched a “Deals of the Week” feature. Every Monday morning we offer our Bargain selections. Here are some of the best deals on hardware, reloading components, and shooting accessories. Be aware that sale prices are subject to change, and once clearance inventory is sold, it’s gone for good. You snooze you lose.
1. RCBS — Buy Green, Get Green Rebate
RCBS is running a very attractive Rebate Program currently. If you spend $300.00 on qualifying products you get a $75.00 rebate. Spend $50 and get a $10.00 Rebate. This program is limited to one (1) rebate redemption per calendar year, with a maximum of $75.00. CLICK HERE for more information. NOTE: To qualify, you must supply completed RCBS rebate coupon, original UPC barcodes from package, and original cash register receipt and/or dated, itemized sales invoice.
2. Monmouth Reloading — 1000 Lake City 5.56 Cases, $68.95
1000 pieces of Lake City brass for under seventy bucks? Yep, that’s a deal and a half. Monmouth Reloading is selling genuine, once-fired Lake City 5.56x45mm brass, thick-walled and sourced direct from the U.S. Military. Monmouth reports: “Our current stock of Lake City 5.56 looks to be all newer year Lake City head stamp but may contain a small percentage of other NATO headstamps. Lake City is a popular, reliable brass, normally capable of many reloads.” Monmouth includes 1% overage to account for any damaged brass. NOTE: Brass has crimped primers, so the pockets will need to be reamed or swaged prior to reloading.
3. Grab A Gun — Remington PSS with 20″ Heavy BBL, $589.00
Remington’s Heavy Barrel PSS model established a reputation for excellent accuracy. This .308 Winchester version features a 20″ heavy barrel threaded for a suppressor. The action is secured in a strong, pillar-bedded Hogue Overmolded ghillie green stock. The trigger is the X-Mark Pro externally-adjustable model set at 3.5 pounds. Weight, without rail or optic, is 7.3 pounds. NOTE: This PSS Rifle may also qualify for a $50.00 rebate from Remington. Inquire before you order.
4. Optics Planet — Leupold Mark AR MOD 1 1.5-4x20mm
Scopes for Service Rifles. Starting next year, under proposed new NRA Competition Rules, Service Rifle shooters will be able to use optical sights with a max magnification of 4.5X (fixed power or variable). At one-third the cost of a 4X ACOG, the Leupold 1.5-4X Mark AR is a good scope choice for the new optics-legal Service Rifle Class. Optics Planet currently has this on Sale for $299.99. With a Duplex reticle, this is also a fine hunting scope.
Every gun owner should have a work mat to protect valuable firearms during cleaning and maintenance operations. Right now you can get a quality 36″x16″ mat for under ten bucks. The non-slip polyvinyl chloride (PVC) surface won’t harm gun’s finish, and its absorbent features keep the fluids from going through your work surface. This week Amazon is offering the Printed Version (shown above) for $9.99 and a Plain Black Version for just $8.09. That’s an excellent value either way.
6. AmmoMen — Federal .22LR Target Ammo, $3.25/50 Rounds
This Federal Gold Medal Target ammo is MUCH better than common bulk rimfire ammo, yet with this deal, it is only 7.5 cents per round — that’s cheaper than pretty much anything else you can buy according to Ammoseek.com. Right now you can get up to ten (10) boxes of this .22 LRrimfire ammo for just $3.75 a box from AmmoMenLLC.com. If you need rimfire ammo, don’t delay — we expect this ammo to sell out very quickly at this price.
7. Walmart — Multi-Purpose Work Bench with Light, $69.95
This 4 foot-wide bench can serve many functions in your work room. We don’t recommend mounting reloading presses to it, but it can hold your tools on the backboard, along with dies and small parts in the drawers. Place bulky items (such as media separators) on the lower shelf. This bench features built-in lighting on the underside of the upper shelf.
Weight Capacity: Bench Top 220 lb, Bottom shelf 200 lb, Top Shelf 44 lb.
Dimensions: 47.4″ (L) x 23.8″ (W) x 61.6″ (H)
8. Bullets.com — Handgun Safe $49.95
This pistol safe keeps your handguns secure while still permitting instant “push-button” access. The three-button lock can be personalized with 3- to 8-digit codes, and there is a key override. This safe will hold two (2) full-sized pistols and can also store passports, cash, or other valuables. The spring-loaded door gives you near-instant response. The all-steel case also includes mounting holes for fixing the safe to floor or shelf.
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“Once-fired, lot-number-traceable Lake City 7.62×51. This has been de-primed, pocket-swaged, small base body die’d, full-length sized, trimmed with a Gracey Trimmer, and tumbled. Now it’s shiny again. It’s like gourmet macaroni for shooters!” — Dennis Santiago
Our friend Dennis Santiago shoots a variety of disciplines, including Vintage Military Rifle. He burns through a lot of brass, some of it run through gas guns, so he often saves money by acquiring once-fired Lake City Arsenal brass. But that stuff is often pretty ugly when it arrives. For his “previously-owned” Lake City Brass, Dennis does a complete case prep operation and a thorough cleaning/tumbling operation. Special attention is paid to the primer pockets — they are swaged to remove the military crimp. The cases are trimmed and chamfered in one operation using a Gracey Powered Case Trimmer.
Dennis likes once-fired Lake City brass for some applications. The price is right, and with proper attention to detail during case prep, Lake City brass can shoot exceptionally well indeed. You may want to sort Lake City brass by weight. To remove the military crimp you have a variety of options — you can swage it out with a special tool like Dennis does, or you can ream out the crimp. For Wilson trimmer owners, Wilson makes a special Primer Pocket Reamer to remove military crimps. It works very well, as shown below:
Case Processing with the Gracey Trimmer
Designed by Doyle Gracey 30 years ago, the Gracey machine trims, deburs and chamfers in one operation, indexing off the case shoulder. The manufacturer claims the Gracey will process 20 cases per minute while holding .002″ tolerances on trim length. Two steel cutters are employed — one cutter trims the case to length and puts a chamfer on the inside of the case mouth. The second cutter removes the burr from the outside of the case-mouth. A 1/15 hp motor turns 1550 rpm. Interestingly, a clamped rubber hose serves as the “drive shaft” to turn the cutting head.
“This model may have a piece of wood for a base, no on-off swith and a piece of bent sheet metial to contain brass shavings — but it does trim, debur and chamfer with great speed and accuracy at a nice price. The [Gracey] two-bladed cutter requires a little more patience to adjust than the one-piece cutter on the Giraud, but it gets the job done superbly. [The Gracey] does the job for less money, if you’re willing to tinker with the cutter blade adjustment.” Gracey machines are still available new from MatchPrep.com for $335.00 (or $235.00 without motor).
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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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You probably know by now that the ATF is seeking comments on a proposed regulation that would ban the importation and sale of M855 steel-core 5.56x45mm ammunition. The ATF has proposed banning this “green-tip” ammo (and similar products) on the grounds that it is “armor piercing”.
Nobody knows whether the proposed ban will actually go into effect. The ATF is solicting comments through March 16, 2015. The mere possibility of a ban has spurred a feeding frenzy of ammo sales. If you are looking for genuine M855-type Green Tip ammo, suitable for use in AR-platform rifles, Creedmoor Sports recently obtained a large supply. Creedmoor just located quantities of Lake City-produced, American Eagle-brand XM855 in cardboard boxes: “Our team found another source for 5.56 mm XM855F Federal Lake City Green Tip Ammo. This ammo is becoming almost impossible to source the closer we get to the [March 16th end] of the ATF comment period.”
Lake City M855 5.56 62gr Green Tip Ammunition (300 Rounds)
Product Description
High-quality 5.56x45mm ammo made in the USA by Lake City. This is “XM855″ ball ammo with a steel penetrator in the core, surrounded by a copper jacket. The projectile is color-coded with a green-painted tip as is traditional with US-made M855.
Product Specifications:
* Manufacturer: Federal / Lake City
* Model: XM855
* Caliber: 5.56 NATO (5.56x45mm)
* Grain Weight: 62 Grains
* Type: Full Metal Jacket with Penetrator
* Units per Case: 300 (in two 150ct boxes)
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Each Wednesday, the U.S. Army Marksmanship Unit publishes a reloading “how-to” article on the USAMU Facebook page. Yesterday’s “Handloading Hump Day” post covered preparation of once-fired 5.56x45mm brass. This article, the first in a 3-part series, has many useful tips. If you shoot a rifle chambered in .223 Rem or 5.56x45mm, this article is worth reading. And visit the USAMU Facebook page next Wednesday for the next installment.
This week, Handloading Hump-Day will answer a special request from several competitive shooters in Alaska. They asked about procedures for morphing once-fired GI 5.56mm brass into accurate match brass for NRA High Power Rifle use. The USAMU has used virgin Lake City (LC) 5.56 brass to win National Championships and set National Records for many years. In this 3-part series, we’ll share techniques proven to wring match-winning accuracy from combat-grade brass.
Preparing Once-Fired GI 5.56 Brass for Reloading (Part 1 of 3)
Assuming our readers will be getting brass once-fired as received from surplus dealers, the following steps can help process the low-cost raw material into reliably accurate components.
1. Clean the Brass
First, clean the brass of any dirt/mud/debris, if applicable. Depending on the brass’s condition, washing it in a soap solution followed by a thorough rinsing may help. [This step also extends the life of the tumbling media.] Approaches range from low-tech, using gallon jugs 1/2 full of water/dish soap plus brass and shaking vigorously, to more high-tech, expensive and time-consuming methods.
2. Wet-Tumbling Options (Be Sure to Dry the Brass)
When applying the final cleaning/polish, some use tumblers with liquid cleaning media and stainless steel pins for a brilliant shine inside and out, while others take the traditional vibratory tumbler/ground media approach. Degree of case shine is purely personal preference, but the key issue is simple cleanliness to avoid scratching ones’ dies.
If a liquid cleaner is used, be SURE to dry the cases thoroughly to preclude corrosion inside. One method is to dump the wet brass into an old pillow case, then tilt it left/right so the cases re-orient themselves while shifting from corner to corner. Several repetitions, pausing at each corner until water stops draining, will remove most water. They can then be left to air-dry on a towel, or can be dried in a warm (150° F-200° F max) oven for a few minutes to speed evaporation.
Shown below are Lake City cases after cleaning with Stainless Media (STM). Note: STM Case cleaning was done by a third party, not the USAMU, which does not endorse any particular cleaning method.
3. Inspect Every Case
Once dry, inspect each case for significant deformation (i.e., someone stepped on it), damaged mouths/necks and case head/rim damage. Some rifles’ ejectors actually dig small chunks of brass out of the case head — obviously, not ideal for precision shooting. Similarly, some extractors can bend the case rims so badly that distortion is visible when spinning them in one’s fingers. These can be used for plinking, but our match brass should have straight, undamaged rims.
Dented case mouths are common, and these can easily be rounded using a conical, tapered tool, [such as a .223 expander mandrel. A dummy 7.62 or .30-06 cartridge with a FMJ spitzer can also work.] If most of your brass is of one headstamp, this is a good time to cull out any odd cases.
4. Check the Primers Before Decapping
Your clean, dry and inspected brass is now ready for full-length sizing, decapping and re-priming. Historically, primer crimps on GI brass have caused some head-scratching (and vile language) among handloaders. Our next installment will detail efficient, easy and practical methods to remove primer crimp, plus other useful handloading tips. Until next week, Good Shooting!
NOTE: The USAMU Handloading (HL) Shop does not RE-load fired 5.56 brass. We use virgin LC brass with our chosen primer already staked in place. However, our staff has extensive personal experience reloading GI brass for competition, which will supplement the Shop’s customary steps. In handloading, as in life, there are many ways to accomplish any given task. Our suggestions are note presented as the “only way,” by any means. Time for loading/practicing is always at a premium. Readers who have more efficient, alternative methods that maintain top accuracy are invited to share them here.
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When we first ran this story a while back, it generated great interest among readers. By popular request, we’re reprinting this story, in case you missed it the first time around. — Editor
Precision shooters favor premium brass from Lapua, Norma, or RWS. (Lake City also makes quality brass in military calibers.) Premium brass delivers better accuracy, more consistent velocities, and longer life. Shooters understand the importance of good brass, but many of us have no idea how cartridge cases are actually made. Here’s how it’s done.
The process starts with a brass disk stamped from strips of metal. Then, through a series of stages, the brass is extruded or drawn into a cylindrical shape. In the extrusion process the brass is squeezed through a die under tremendous pressure. This is repeated two or three times typically. In the more traditional “draw” process, the case is progressively stretched longer, in 3 to 5 stages, using a series of high-pressure rams forcing the brass into a form die. While extrusion may be more common today, RWS, which makes some of the most uniform brass in the world, still uses the draw process: “It starts with cup drawing after the bands have been punched out. RWS cases are drawn in three ‘stages’ and after each draw they are annealed, pickled, rinsed and subjected to further quality improvement measures. This achieves specific hardening of the brass cases and increases their resistance to extraordinary stresses.” FYI, Lapua also uses a traditional draw process to manufacture most of its cartridge brass (although Lapua employs some proprietary steps that are different from RWS’s methods).
After the cases are extruded or drawn to max length, the cases are trimmed and the neck/shoulder are formed. Then the extractor groove (on rimless cases) is formed or machined, and the primer pocket is created in the base. One way to form the primer pocket is to use a hardened steel plug called a “bunter”. In the photos below you see the stages for forming a 20mm cannon case (courtesy OldAmmo.com), along with bunters used for Lake City rifle brass. This illustrates the draw process (as opposed to extrusion). The process of draw-forming rifle brass is that same as for this 20mm shell, just on a smaller scale.
River Valley Ordnance explains: “When a case is being made, it is drawn to its final draw length, with the diameter being slightly smaller than needed. At this point in its life, the head of the draw is slightly rounded, and there are no provisions for a primer. So the final drawn cases are trimmed to length, then run into the head bunter. A punch, ground to the intended contours for the inside of the case, pushes the draw into a cylindrical die and holds it in place while another punch rams into the case from the other end, mashing the bottom flat. That secondary ram holds the headstamp bunter punch.
The headstamp bunter punch has a protrusion on the end to make the primer pocket, and has raised lettering around the face to form the headstamp writing. This is, of course, all a mirror image of the finished case head. Small cases, such as 5.56×45, can be headed with a single strike. Larger cases, like 7.62×51 and 50 BMG, need to be struck once to form a dent for the primer pocket, then a second strike to finish the pocket, flatten the head, and imprint the writing. This second strike works the brass to harden it so it will support the pressure of firing.”
Thanks to Guy Hildebrand, of the Cartridge Collectors’ Exchange, OldAmmo.com, for providing this 20mm Draw Set photo. Bunter photo from River Valley Ordnance.
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Lake City vs. Lapua — which brass is harder? And how about Remington vs. Winchester? Is the widely-held belief that Win brass is harder than Rem brass really true? To help settle these burning questions (raised in a Forum thread), Forum member Catshooter recently sampled the base hardness of four brands of .223/5.56 brass. He employed a very impressive tool for the task — a $2,500 Ames Hardness Gauge. Catshooter explained that his Ames Guage “is FAA certified and approved for testing aircraft engine parts — it does NOT get any better than that!”
Catshooter measured four cases picked at random from batches of Lake City (LC) 2008 (5.56x45mm), Lapua .223 Rem Match, Winchester .223 Rem, and Remington R-P .223 Rem.
Lake City
Lapua Match
Winchester
Remington
Photo Shows Ames Gauge Base Hardness Measurement on Lake City Brass
Photo Show Ames Gauge Base Hardness Measurement on Winchester Brass
TEST RESULTS
Using Rockwell hardness standards (.062″x100kg, Rockwell “B”), the brass measured as follows:
LC 2008 = 96
Lapua 223 Match = 86
Winchester 223 = 69
Remington “R-P” = 49
Summary of Test Results
Catshooter writes: “For all you guys that have believed that Winchester cases were tougher than Remington — you are vindicated, they are a lot tougher! However, Lake City and Lapua are ‘the pick of the litter'”. Catshooter notes that both Lake City and Lapua are significantly harder than either Winchester and Remington .223 brass. That’s something that we’ve observed empirically (Lapua and LC stand up better to stout loads), but now we have some hard numbers to back that up. Hats off to Catshooter for settling the hardness debate with his Ames Hardness Gauge.
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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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Need inexpensive .30-caliber major-brand bullets? Graf & Sons has you covered. Grafs.com just made available a large number of pull-down Sierra 175gr HPBT MatchKing bullets at a cost of just $21.99 per 100 bullets. This price includes shipping, but there is a single $6.95 handling fee per order. These .308 Sierra bullets are pulled down from Lake City LRM118 millitary ammo. Note, since these are pull-down bullets (taken from dismantled ammo), the bullets may exhibit scratches or pull marks. Still, if you are looking for a supply of .30-caliber bullets available right now at a great price, check out this current offer.
Product tip from EdLongrange. We welcome reader submissions.
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