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ATK will purchase Bushnell in a USD985 million agreement

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September 5
12:24 PM 2013

ATK announced today that it had entered into a definitive agreement with Bushnell Group Holdings, Inc. Under the terms of the agreement, ATK would be paying Bushnell USD985 million in cash to acquire the latter, which would be subject to customary adjustments post-closing. The valuation was determined by the 10-time multiple projected 2013 earnings before interests, taxes, depreciation and amortization (EBITDA) multiple of Bushnell.

ATK is an ammunitions maker headquartered in Virginia and has operations in 21 US states and offshore, including Puerto Rico. Bushnell is a top worlwide designer, distributor and marketer of branded sports optics, outdoor performance eyewear and accessories.

To finance the agreement, ATK secured a senior acquisition financing commitment valued at USD900 million, in addition to borrowings under its revolving credit facility and cash on hand.

ATK President and Chief executive Mark DeYoung said, "This acquisition will broaden our existing capabilities in the commercial shooting sports and expand our portfolio of branded shooting sports products. In addition, this transaction will allow the company to effectively enter new sporting markets in golf, snow skiing and camping. ATK will leverage Bushnell's strong sourcing, marketing, branding and distribution capabilities and capitalize on Bushnell's track record of successfully integrating acquisitions and delivering profitable growth." 

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