ATK to acquire Thiokol Propulsion for $685 million

Alcoa and ATK have reached a definitive agreement under which ATK will acquire Alcoa’s Thiokol Propulsion business for $685 million in cash.

Thiokol, a supplier of rocket propulsion systems for space launch vehicles with sales of approximately $570 million, became part of Alcoa with the acquisition of Cordant Technologies in May 2000.

ATK is a $1.1 billion US aerospace and defence company. Headquartered in Hopkins, MN, the company has three business segments: Conventional Munitions, Aerospace, and Defence Systems.

The transaction, which has received all necessary corporate approvals of both companies, is subject to customary regulatory approvals. It is expected to close by the end of the second quarter of 2001.

ATK said it expects the acquisition to be accretive to earnings by 5 to 10 cents per share in fiscal year 2002, which begins April 1, 2001.

On the web