Alliant Techsystems (ATK) is jumping higher Tuesday and has reached a new record high after the company announced that it has entered into a definitive agreement with Orbital Sciences (ORB) which will combine ORB and ATK’s Aerospace and Defense Groups into a single space, defense and aviation systems developer and manufacturer.
Shares are up 8% at $150, touching the all time high of $155.50.
The new company, to be called Orbital ATK, Inc., will serve U.S. and international customers with leading positions in the markets for space launch vehicles and propulsion systems, tactical missiles and defense electronics, satellites and space systems, armament systems and ammunition, and commercial and military aircraft structures and related components.
The tax-free stock-for-stock merger-of-equals transaction, valued at $5 billion based on ORB’s closing stock price yesterday, will combine ORB’s small- and medium-class satellite and launch vehicle product lines with ATK Aerospace and Defense’s rocket propulsion, composite structures and space power systems to produce even more capable and affordable space and missile defense products.
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