Orbital Sciences and Alliant Techsystems announce merger
It was announced recently that Orbital Sciences will be merging with Alliant Techsystems to form a new company called Orbital ATK.
Orbital Sciences Corporation, an aerospace company that creates space and rocket systems, is based in Dulles, VA. Alliant Techsystems is the "world's top producer of solid rocket propulsion systems and a leading supplier of military and aircraft structures," according to the company's website.
In addition to making aerospace technology, Alliant Techsystems produces defense products, such as ammunition, and sporting products, supplying firearms for hunting as well as military and law enforcement agencies.
The merger will mean that Alliant Techsystems and Orbital Sciences will combine their defense and aerospace groups to create a new company, according to an article in the Washington Post.
"We believe both companies will be better able to support and respond to the needs of their markets and customers, creating a stronger player in the [aerospace and defense] industry, while unlocking the potential to grow the value of the ATK Sporting Group," said Ronald Fogleman, ATK board of directors chairman.
The merger will form a new company called Orbital ATK. This technology merger makes sense for the companies, as they have been working together for over two decades. According to GovConwire, when the merger is complete, Alliant Techsystems shareholders will own 53.8 percent of Orbital ATK.
The deal is valued at approximately $5 billion and is set to be completed by the end of this year. Orbital ATK will be based out of Dulles, and will employ approximately 13,000 people. Orbital Sciences current chairman, David Thompson, will stay on as Orbital ATK's president and CEO. The sporting unit of Alliant Techsystems will be separated in to a different company.