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January 31, 2001
ATK To Acquire Thiokol Propulsion From Alcoa
PITTSBURGH and MINNEAPOLIS--January 31, 2001--
Alcoa Inc. and ATK (Alliant Techsystems Inc.) announced today that they
have reached a definitive agreement under which ATK will acquire Alcoa's
Thiokol Propulsion business for $685 million in cash. Thiokol, a leading
supplier of rocket propulsion systems for space launch vehicles with
sales of approximately $570 million, became part of Alcoa with the
acquisition of Cordant Technologies in May 2000. ATK is a supplier of
aerospace and defense products, including conventional munitions and
propulsion rocket motors.
The transaction, which has received all necessary corporate approvals of
both companies, is subject to customary regulatory approvals. It is
expected to close by the end of the second quarter of 2001.
Commenting on the announcement, Alcoa Chairman and CEO Alain Belda said,
"This transaction is beneficial to all parties involved. It delivers
value to Alcoa shareholders, and Thiokol becomes a strategic part of
ATK, a company in the propulsion business and positioned to help Thiokol
realize the full value of its products and technologies."
"This is a sound strategic acquisition that will deliver significant
value to customers, employees and ATK shareholders," said Paul David
Miller, chairman and chief executive officer of ATK. "When approved, we
will have a blend of propulsion expertise, leadership spirit, and
personal commitment to integrate effectively these businesses." ATK said
it expects the acquisition to be accretive to earnings by 5 to 10 cents
per share in fiscal year 2002, which begins April 1, 2001.
Alcoa is the world's largest producer of primary aluminum, fabricated
aluminum, and alumina and participates in all segments of the industry:
mining, refining, smelting, fabricating and recycling. Alcoa serves
customers worldwide in the packaging, consumer, automotive, aerospace,
construction and distribution markets. Related Alcoa businesses include
packaging machinery, vinyl siding, plastic bottles and closures,
electrical distribution systems for cars and trucks, and fiber optic
cable. The company has operations in 36 countries.
ATK is a $1.1 billion aerospace and defense company with leading market
positions in munitions, smart weapons/precision capabilities,
propulsion, and composite structures. The company, which is
headquartered in Hopkins, Minn., has three business segments:
Conventional Munitions, Aerospace, and Defense Systems.
Alcoa Inc. (NYSE: AA)
Alliant Techsystems Inc. (NYSE: ATK)
Some of the statements in this release are forward-looking. Actual
results may differ materially from those projected. Factors such as
changes in economic conditions in the markets we serve or other factors
discussed in our latest quarterly and annual reports filed with the
Securities and Exchange Commission could cause actual results to differ
materially from those expressed in this release.
Charles D. McLane