Major MN Employer ATK Splits Into 2 Companies
Alliant Techsystems, Inc., which until its 2011 headquarters move was one of Minnesota's largest public companies, said Tuesday that it plans to split into two independent companies and merge one of them with Orbital Sciences Corporation.
Alliant Techsystems, also known as ATK, is an aerospace, defense, and sporting goods and ammunition company that was based in Eden Prairie until 2011—when it moved to its current headquarters in Arlington, Virginia.
However, the company still houses about 200 employees in Eden Prairie in finance, IT, and legal roles. The Star Tribune reported Tuesday that some employees there are nervous that the deal could result in Minnesota job cuts, although the company itself didn’t disclose any plans to cut jobs in its announcement.
ATK also owns ammunition manufacturer Federal Premium Ammunition—headquartered in Anoka—which has around 1,400 employees. According to ATK’s website, it also has an ammunitions facility in Plymouth and a 3,000-acre ammunitions testing grounds facility in Elk River.
Company spokeswoman Amanda Covington told Twin Cities Business that the Eden Prairie, Plymouth, and Elk River facilities will become part of the newly merged “Orbital ATK” but that planning for the transition of the sites hadn’t begun. Orbital Sciences is based in Dulles, Virginia. Covington did not disclose how the deal would affect the Anoka facility or its employees.
The deal will establish the company’s sporting goods and ammunition business as its own standalone company, which for now it refers to as “Sporting.” It will be headquartered in Utah and is expected to employ about 5,800 workers in 11 states and worldwide.
ATK also plans to merge its aerospace and defenses businesses with rocket and space-systems manufacturer Orbital Sciences Corporation, to become “Orbital ATK, Inc.” It is expected to employ about 13,000 workers across 17 states. ATK said the combined company will have $4.5 billion in annual revenue and that the merger will generate $70 million to $100 million by eliminating duplicate costs and streamlining its operations.
ATK CEO and President Mark DeYoung will become chairman and CEO of the new ATK Sporting company and Orbital CEO Dave Thompson will become CEO of Orbital ATK.