Alliant Techsystems Inc. (NYSE:ATK) agreed to buy Bushnell Group Holdings—designer and distributor of branded sports optics, outdoor accessories and performance eye-wear—for $985 million, to expand its commercial outdoor sporting business.
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According to Alliant Techsystems Inc. (NYSE:ATK) the $985 million acquisition price for Bushnell Group Holdings represents an estimated FY 2013 EBITDA multiple of 10x. Bushnell is expected to generate $600 million sales this year. Alliant Techsystems said the transaction would result in earnings dilution in 2014, and contribution to its EPS by 2015. The company estimated an accretion of $1.00 to its EPS by 2016.
Mark DeYoung on the merger
In a statement, Mark DeYoung, president and CEO of Alliant Techsystems Inc. (NYSE:ATK) said, “The Bushnell acquisition is consistent with Alliant Techsystems’ focus on establishing leadership positions in our core markets. This acquisition will broaden our existing capabilities in the commercial shooting sports and expand our portfolio of branded shooting sports products.”
DeYoung added that the deal would allow Alliant Techsystems Inc. (NYSE:ATK) to enter the new sporting markets such as golf, skiing and camping. According to him, the company will leverage the strong capabilities of Bushnell in branding, marketing, sourcing, and distribution, as well as capitalize on its successful record in integrating acquisitions and delivering growth.
Bushnell Group Holdings has over 10,000 customer accounts in more than 90 countries around the world, and offers 19 outdoor sporting brands such as Primos, Bollé, Hoppe’s, Uncle Mike’s, Butler Creek and Serengeti. It has 1,100 skilled employees.
Blake Lipham proud of Bushnell’s team
Blake Lipham, president and CEO of Bushnell Outdoor Products said, “I am very proud of what the Bushnell team has accomplished. We are passionate about our brands, products and the outdoor enthusiasts we serve. The opportunity to join the Alliant Techsystems family will allow us to further support the emerging needs of our customers and consumers.”
Alliant Techsystems Inc. (NYSE:ATK) said it will fund the transactions through a combination of cash on hand and new borrowings under its existing revolving credit facility. The company obtained $900 million senior secured acquisition financing commitment.