Orbital Sciences has announced that it has entered into a definitive agreement with Alliant Techsystems Inc which will combine Orbital and ATK’s Aerospace and Defense (A&D) Groups to create a $4.5 billion, 13,000-person space, defense and aviation systems developer and manufacturer.
The new company is to be called Orbital ATK and will serve US and international customers in the markets for space launch vehicles and propulsion systems, tactical missiles and defence electronics, satellites and space systems, armament systems and ammunition, and commercial and military aircraft structures and related components. As part of the transaction, ATK will spin-off its Sporting Group, which focuses on commercial sporting equipment, to its shareholders.
Orbital’s small- and medium-class satellite and launch vehicle product lines will be combined with ATK A&D’s rocket propulsion, composite structures and space power systems to produce even more capable and affordable space and missile defence products. At the same time, it will enhance ATK A&D’s strategic and tactical missile systems and propulsion, precision weapons and military armament, and commercial and military aircraft programs by leveraging Orbital’s systems design, engineering and integration capabilities to provide greater value-added to current and future customers.
A 16-member Board of Directors will be headed by Chairman Gen. Ronald R. Fogleman (U.S. Air Force, ret.) and will include seven directors from ATK’s Board and nine directors from Orbital’s Board. Positions will be determined prior to the transaction’s closing, with an equitable and balanced selection of senior executives from each company expected in the new organisation.
Mr. Mark W. DeYoung, ATK’s Chief Executive Officer said;
The proposed merger will generate cost and revenue synergies and create a more streamlined and competitive operator. We see opportunities to build on ATK’s success in Aerospace and Defense through a combination with Orbital’s proven track record in creating new launch vehicles, satellites and other advanced space technologies. We are both focused on enhancing the capability of existing customer systems by developing solutions that can be more flexibly deployed to support their mission with enhanced cost-effectiveness. We also see significant opportunities for growth as new programs are initiated or begin to ramp up production.
Orbital ATK will employ around 13,000 people, including over 4,300 engineers and scientists and 7,400 production and operations specialists, at engineering centers, research laboratories, manufacturing facilities, and test and launch sites in 17 states. Employees will benefit from expanded long-term career opportunities and enhanced job stability by being part of a larger, more diverse and financially stronger enterprise dedicated to technological innovation, fast product cycles and operational efficiency. The combined company will be headquartered at Orbital’s existing Dulles, Virginia campus, with major employee sites in Utah, Missouri, Virginia, Arizona, Maryland, West Virginia, California and Minnesota.