ATK To Acquire Thiokol Propulsion From Alcoa.Business Editors PITTSBURGH & MINNEAPOLIS--(BUSINESS WIRE)--Jan. 31, 2001 Alcoa Inc. (NYSE NYSE See: New York Stock Exchange :AA) and ATK ATK - Andrew Toolkit (Alliant Techsystems Alliant Techsystems NYSE: ATK is a major US aerospace and defense contractor with sales of approximately USD $3.6 billion (fiscal year 2007) [1] and strong positions in propulsion, composite structures, munitions, precision capabilities, and civil and sporting Inc.) announced today that they have reached a definitive agreement under which ATK (NYSE:ATK) will acquire Alcoa's Thiokol Propulsion business for $685 million in cash. Thiokol, a leading supplier of rocket propulsion Rocket propulsion The process of imparting a force to a flying vehicle, such as a missile or a spacecraft, by the momentum of ejected matter. This matter, called propellant, is stored in the vehicle and ejected at high velocity. 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 supplier of aerospace and defense products, including conventional munitions mu·ni·tion n. War materiel, especially weapons and ammunition. Often used in the plural. tr.v. mu·ni·tioned, mu·ni·tion·ing, mu·ni·tions To supply with munitions. and propulsion rocket motors. 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. Commenting on the announcement, Alcoa Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Alain Belda said, "This transaction is beneficial to all parties involved. It delivers value to Alcoa shareholders, and Thiokol becomes a strategic part of ATK, a company in the propulsion business and positioned to help Thiokol realize the full value of its products and technologies." "This is a sound strategic acquisition that will deliver significant value to customers, employees and ATK shareholders," said Paul David Miller, chairman and chief executive officer of ATK. "When approved, we will have a blend of propulsion expertise, leadership spirit, and personal commitment to integrate effectively these businesses." ATK said it expects the acquisition to be accretive to earnings by 5 to 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in fiscal year 2002, which begins April 1, 2001. Alcoa is the world's largest producer of primary aluminum, fabricated aluminum, and alumina and participates in all segments of the industry: mining, refining, smelting, fabricating and recycling. Alcoa serves customers worldwide in the packaging, consumer, automotive, aerospace, construction and distribution markets. Related Alcoa businesses include packaging machinery, vinyl siding, plastic bottles and closures, electrical distribution systems for cars and trucks, and fiber optic cable Noun 1. fiber optic cable - a cable made of optical fibers that can transmit large amounts of information at the speed of light fibre optic cable transmission line, cable, line - a conductor for transmitting electrical or optical signals or electric power . The company has operations in 36 countries. ATK is a $1.1 billion aerospace and defense company with leading market positions in munitions, smart weapons/precision capabilities, propulsion, and composite structures. The company, which is headquartered in Hopkins, Minn., has three business segments: Conventional Munitions, Aerospace, and Defense Systems. Some of the statements in this release are forward-looking. Actual results may differ materially from those projected. Factors such as changes in economic conditions in the markets we serve or other factors discussed in our latest quarterly and annual reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those expressed in this release. |
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