ARLINGTON, Va. (AP) — Alliant Techsystems Inc. said Monday that it has agreed to buy Caliber Co., the parent company of hunting rifle and shotgun manufacturer Savage Sports Corp., for $315 million in cash.
The aerospace and defense contractor, known as ATK, said the acquisition will add long guns to its lineup of commercial and personal ammunition, shooting sports and security-related accessories.
Savage Sports operates under the brand names Savage Arms, Stevens, and Savage Range Systems. It designs, manufactures and markets centerfire and rimfire rifles, shotguns and shooting range systems used for hunting and target shooting.
Savage, organized in 1894, is located in Westfield, Mass., and Lakefield, Ontario. It employs about 600 skilled workers.
The deal, which remains subject to regulatory approvals, is expected to close in the first quarter of ATK's fiscal year 2014.
Arlington, Va.-based ATK expects the acquisition to boost its fiscal year 2014 earnings per share. It plans to finance the deal with cash on hand and existing loans.
Caliber has been a portfolio company of Minneapolis-based private equity firm Norwest Equity Partners since January 2012.