ATK (NYSE: ATK) has agreed to buy outdoor sporting goods maker Bushnell Group Holdings for $985 million cash in a move aimed at expanding ATK’s commercial and security ammunition portfolio.
ATK expects to close the deal within the last two quarters of its 2014 fiscal year and expects the acquisition to increase its earnings per share in the following two fiscal years, ATK said Thursday.
Bushnell Group, which projects $600 million in sales during calendar year 2013, will be integrated into ATK’s Anoka, Minn.-based sporting group after the deal closes.
Mark DeYoung, ATK president and CEO, said the company aims to enter new markets such as golf, snow skiing and camping through the acquisition.
DeYoung added ATK also aims to build on its current commercial shooting sports offerings and expand its portfolio of branded shooting sports products.
Overland Park, Kan.-based Bushnell maintains 19 outdoor brands for sports optics, performance outwear and recreation accessories.
The company holds more than 10, 000 customer accounts and employs 1, 100 workers around the globe.