Breaking News: ATK Buys Savage For $315 Million

Alliant Techsystems Inc. (ATK), have acquired the Caliber Company for $315 Million. The Caliber Company is the parent company of Savage Sports Corporation. From the press release …

ARLINGTON, Va., May 13, 2013 /PRNewswire/ — ATK (NYSE: ATK) announced it has entered into an agreement to acquire Caliber Company, the parent company of Savage Sports Corporation. 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.

ATK owns a wide range of gun/tactical accessory and ammunition brands including Blackhawk, Federal Ammunition, CCI Ammunition, Speer , Blazer, Weaver Optics, Eagle Industries, Alliant Powder and RCBS. Just about the only thing they that not made until now is firearms themselves. ATK closed up 2.72% today.

ATK

Now that Savage has been acquired, there is just one independent gun maker left on my list of companies-I-cannot-believe-have-not-yet-been-purchased. Care to guess what that company is? (Hint: they make pistols, rifles and shotguns).

 



Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


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  • Joe

    Ruger?

    • Steve (TFB Editor)

      They are a public company.

  • Colt.

    • Chris

      Owned by Zilkha & Co

  • PlumberofNazareth

    Mossberg, perhaps?

    • Chris

      I don’t think they make pistols, although they are still owned by the Mossberg family

    • Steve (TFB Editor)

      Not what I had in mind, but maybe they should be on the list.

  • Chris

    Beretta?

    • Steve (TFB Editor)

      They are a huge conglomerate who have bought up many smaller gun companies.

      • Chris

        Them and FN are the only ones I can think of that do riles, pistols, and shotguns. I can tell this is going to be annoyingly obvious when someone eventually gets it.

  • Chris

    How about Taurus?

    • PlumberofNazareth

      They’re a conglomerate themselves. Rossi, etc.

  • PlumberofNazareth

    Kel-Tec?

    • Steve (TFB Editor)

      You got it 😉

  • Jim50sharps

    CZ?

  • Chief Homeslice

    Kel tec!

    • Steve (TFB Editor)

      Thats it!

  • Jim50sharps

    Weatherby?

  • vash

    This news kind of bites my a#$ to know Savage was bought up and made part of a huge collective. Savage being their own and not like Remington was one of the reasons I chose Savage over the latter. I hope their QC doesn’t become out of sorts like what happened to Marlin when they were bought out too.

  • 5

    S&W

  • 5

    Kimber

  • CB

    Sig Sauer

  • Charlie

    I hate to see another independent bite the dust. I have several Savages and love their out of the box accuracy and quality. Lately it seems that when a manufacturer is bought up the quality goes down hill.

  • noob

    wow. Can you imagine the conglomerates just running unified branding in the future.

    SHOT show stops being a whole lot of little booths and the hall is divided into four or five mega-booths.

    It’s like the computer industry all over again, where the AR-15 is the IBM compatible PC.

    Does that make George Kellgren the next Steve Jobs? (if steve jobs stopped liking white and shiny and started liking grey and waffle shaped.)

  • Gage

    I know everyone mentioned Kel-Tec, but aren’t Ruger and S&W independent?

  • Matt R.

    Is there a list online somewhere of firearm manufacturer’s corporate ownership? I looked, but with all the political stuff latelty, the search engines are crammed with “firearm manufacturers” and “ownership” articles.

  • kel-tec bought savage? does this mean production is going to slow to a crawl at savage like it does at kel-tec?

  • Aaron

    I am not at all thrilled with this decision! I am a huge fan of Blackhawk products. However, under the ATK umbrella I have seen the creative genius of the independent companies (like Blackhawk) curtailed, and sometimes sidetracked.

    You need a brilliant business team to make a firearms company successful. Yet the success of a firearms company will always be dependent upon the genius of their engineers and skilled workers. Sometimes the suits just don’t understand what the end users are looking for, like the people who get their hands dirty every day with the product.

    I have a Savage .30-06. I chose them because of their reputation, reliability, and affordability. To see a great independent firearm manufacturer gobbled up by a conglomerate is a sad day to me. Time will tell if the ATK bug bites Savage’s products.

  • guest

    firearmblog moving here?