ATK announced that it will pay $315 million to acquire Caliber Company, the parent company of Savage Sports Corporation which runs Savage Arms, and Stevens. Savage will be integrated into ATK’s Sporting Group business which includes Federal Premium, Alliant Powder, CCI, RCBS, Speer, Champion Targets, and other outdoor sports brands.
The acquisition of Savage by ATK will expand ATK’s portfolio offering by adding a respected producer of long guns to its family of leading brands in the shooting and outdoor sports industries. ATK anticipates closing the transaction in the first quarter of its Fiscal Year 2014, which ends June 30, 2013.
ATK (NYSE: ATK) announced it has entered into an agreement to acquire Caliber Company, the parent company of Savage Sports Corporation (Savage). Savage is one of the world’s largest manufacturers of hunting rifles and shotguns, delivering innovative products for more than 100 years. The acquisition would expand ATK’s portfolio offering by adding long guns to its leading brands in commercial and security ammunition, shooting sports and security-related accessories. The transaction is subject to regulatory approvals and customary closing conditions. ATK anticipates closing the transaction in the first quarter of its Fiscal Year 2014 (FY14), which ends June 30, 2013.
Under the terms of the transaction, ATK will pay $315 million in cash, subject to a customary working capital adjustment. This represents a trailing twelve months ended March 31, 2013 EBITDA multiple of approximately 5.5 times (unaudited). ATK believes the acquisition will be accretive to FY14 earnings per share. ATK will finance the acquisition with cash on hand and funds available under its existing credit facility.
“The acquisition will complement ATK’s growing portfolio of leading consumer brands,” said Mark DeYoung, ATK President and CEO. “This opportunity will allow us to build upon our offerings with Savage’s prominent, respected brands known for accuracy, quality, innovation, value and craftsmanship. Savage’s sales distribution channels, new product development, and sophistication in manufacturing will significantly increase our presence with a highly relevant product offering to distributors, retailers and consumers.”
Operating under the brand names of Savage Arms, Stevens, and Savage Range Systems, the company designs, manufactures and markets centerfire and rimfire rifles, shotguns and shooting range systems used for hunting as well as competitive and recreational target shooting. The company was organized in 1894 by Arthur Savage and has expanded into market-leading positions. Savage is located in Westfield, Mass. and Lakefield, Ontario, and employs approximately 600 skilled employees.
“Savage offers customers a unique value proposition that is unmatched by any other firearms manufacturer and will be a tremendous complement to ATK’s existing ammunition and shooting accessories portfolio,” said Al Kasper, Savage President and Chief Operating Officer.
ATK will integrate Savage within its Sporting Group business. ATK’s Sporting Group is the established leader in sporting and law enforcement ammunition and shooting accessories. ATK’s ammunition brands include Federal Premium, CCI, Fusion, Speer, Estate Cartridge and Blazer. ATK’s accessories brands include BLACKHAWK!, Alliant Power, RCBS, Champion targets and shooting equipment, Gunslick Pro and Outers gun-care products, and Weaver optics and mounting systems.
Caliber Company has been a portfolio company of Norwest Equity Partners (NEP), a leading middle market equity investment firm, since January 2012. NEP is headquartered in Minneapolis, Minn.
ATK is an aerospace, defense, and commercial products company with approximately 15,000 employees and operations in 21 states, Puerto Rico, and internationally. ATK is headquartered in Arlington, Va. News and information can be found on the Internet at www.atk.com, on Facebook at www.facebook.com/atk, or on Twitter @ATK.
Having led one of the most remarkable turnarounds in the outdoor industry, Ron Coburn is stepping down as Chairman and CEO of Savage Sports Corporation. Ron’s retirement follows a 25-year tenure as CEO where he led the Company out of insolvency to the Company’s current position as one of America’s top rifle makers. Coburn took the helm of Savage in 1988 shortly after the Company filed for bankruptcy protection and Coburn guided Savage’s subsequent rise to market leadership.
“Everybody wants to go out on top,” Coburn said. “We’ve had many years of strong, sustained growth, and it seems like every year has been a new record year for Savage. The business has never been better positioned for the future. I’m turning 65 this year; the time is right for a transition.”
Coburn’s retirement has been in process for several years, as he has slowly delegated the day-to-day leadership to the Company’s management team. “Some people say that Ron Coburn rebuilt Savage Arms. That’s not true. I helped build a team and together we rebuilt Savage Arms,” Coburn stated. “The management team is still in place, and Savage is in very good shape with a very, very bright future.” Coburn will maintain a substantial personal financial stake in the company: “I may be moving out, but my money is staying. I can’t think of a better place to invest right now.”
Coburn Shoots What He Sells
You have to love a gun company CEO who actually gets behind the trigger. In this “behind the scenes” video made during the filming of a Savage Arms commercial in Utah, Team Savage Captain Stan Pate guides Ron Coburn in the use of the Savage Palma rifle chambered in .308 Winchester. Ron successfully hits targets at 1200 yards. Ron comes away smiling, as do members of the film crew who get “trigger time” at the end of the video. We love Stan Pate’s closing line. With a big grin, he says that the Savage rifle’s accuracy makes long-range shooting “So easy — even the Boss can do it“.
Savage Arms is sponsoring a series of range days this year, at locations around the country. Savage provides the guns, and the ammo (limited quantity allocated to each shooter). The latest range day is happening today, June 23, at the Evans Brothers Range in Huntington, Texas. A popular shooting personality, Top Shot Season 3 winner Dustin Ellermann, will be on hand to provide shooting tips and meet the participants. If you’re anywhere near Huntington today, head out to the range and have fun. Dustin writes on his Facebook page: “Want to come shoot with me? I’ll be at Evan’s Brothers Guns in Huntington this Saturday (June 23) from 9:00 – 12:00 demoing some sweet Savage Arms rifles.” Here are some photos from last year’s Savage Range Day at Evans Brothers Range:
Story Tip from EdLongrange. We welcome reader submissions.
Correspondent Kelly Bachand visited the Savage booth at SHOT Show 2012. As always we were impressed with the wide range of affordable, rimfire rifles marketed by Savage. The popular Mark II BTVS is a good choice for rimifire tactical games, and it is also a nice carry-around varminter for squirrels and other small critters. The model 93 ‘Package Series’ rifles are real bargains. MSRP on the model 93R17 XP Camo package (which includes 3-9x40mm scope) is $456.00, while the “street price” is around $385.00.
What really caught Kelly’s eye was the impressive Model 110 FCP chambered in .338 Lapua Magnum. This rifle features a stiff, high-quality HS Precision fiberglass tactical stock with V-block insert. New for 2012 is the .300 Win Mag chambering. (Other chamberings are .338 LM and .308 Win, both introduced last year). The Model 110 FCP HS Precision features a 5-round detachable box magazine, 26″ heavy fluted barrel, muzzle brake, and AccuTrigger. It even comes with scope rail.
In .338 Lapua Magnum, the m110 FCP weighs 10.7 lbs. The .300 WM and .300 Win are somewhat lighter, tipping the scales at 9 lbs. without optics. MSRP for the .300 WM version is $1192.00 — a good value, considering what the stock would cost by itself. The big .338 Lapua Magnum version has a $1549.00 MSRP on Savage’s website.
If you’re on a tight budget, Savage also offers a long-range big-caliber rifle in a polyethylene (tupperware) Accustock. The Model 11/111 Long Range Hunter is a lighter hunting variant that features a composite AccuStock with 3D bedding and a Karsten adjustable cheekpiece. It also has a 5-round detachable magazine, heavy fluted barrel, muzzle brake and AccuTrigger. MSRP for a Long Range Hunter in .300 Win Magnum, is $989.00.
Today, Savage Arms will post previews of its new 2012 product line-up throughout the day, starting at noon Eastern Time. Items will be posted one-by-one. For the “first looks” at new Savage guns, go to Savage’s official Facebook Page, http://www.facebook.com/savagearms. We will publish the new product descriptions here, as they are revealed.
NEW Item Five: Model 11/111 Lady Hunter
The New Model 11/111 Lady Hunter has a female-friendly geometry that features a shorter length of pull, higher comb, shorter reach from pistol grip to trigger, slimmer fore-end and lighter front-end weight.
NEW Item Four: Left-Hand Model 220 Slug Gun
For southpaws, Savage had added a left-hand model 220 20 gauge Slug Gun. Suggested retail is $549.00. This seemed to stir quite a bit of interest among Savage’s Facebook fans.
NEW Item Three: “Rascal” Compact Bolt-Action Rifle for Kids – Just $174
Savage says: “You’ve seen other micro-sized guns but not one like this. It is safer (manual safety, accutrigger and can be unloaded without pulling the trigger). It’s easier to use (feed ramp, cocks on bolt lift) and it’s more accurate — given its accutrigger and adjustable peep sights. The “Rascal” will be available in several colors, to be determined later. Suggested retail is a mere $174.00.
NEW ITEM Two: Stevens Model 320 Shotgun
This is the new Stevens Model 320 Security Pump. It features a pistol grip stock, rotary bolt and Ghost Ring sights. Suggested retail is $260. Whoa — at that price, Savage is going to sell a ton of these if it proves reliable. People will be jazzed by the pistol grip stock and Ghost Rings. If you want a standard stock (which is actually more ergonomic for many folks), Stevens offers that as well (lower photo).
Click Images to Zoom
NEW ITEM One: Trophy Hunter XP Packages
These come with a 3-9×40 Nikon BDC scope, which is a considerable upgrade over previous packages we have offered. These scopes are compatible with Nikon’s proprietary Spot-On ballistic software. We anticipate actual sales prices to be $499.00 to $599.00 for the blue/syn, $549.00 to $649.00 for blue/wood and $599.00 to $699.00 for stainless/synthetic.
If you are a gun enthusiast with leadership experience in the sales/marketing field, here is a potential dream job with a good salary and decision-making clout. Savage Arms is seeking a National Sales Manager who will be responsible for the development and performance of all sales activities with distributor, buying group, and select ‘big box’ retailer accounts. The National Sales Manager will lead the team of sales reps and will manage domestic distributor and big-box accounts. The National Sales Manager also will attend national trade shows, provide market feedback to senior management, and assist in the development and implementation of marketing plans.
Job Experience Required
The successful candidate will posses a bachelors degree or equivalent experience, 10+ years experience in a sales management role, and knowledge of Savage customers, products and competitors. The candidate also must have strong organizational skills, a proven ability to motivate and educate, the ability to operate under pressure and manage multiple priorities. To apply for the job, send resume and salary requirements to:
Savage Arms, Inc.
100 Springdale Rd.
Westfield, MA 01085
Fax: 413-562-7130
plessard@savagearms.com
ATK announced that it will pay $315 million to acquire Caliber Company, the parent company of Savage Sports Corporation which runs Savage Arms, and Stevens. Savage will be integrated into ATK’s Sporting Group business which includes Federal Premium, Alliant Powder, CCI, RCBS, Speer, Champion Targets, and other outdoor sports brands. 
