After the failed Antares rocket launch on Oct. 28 prompted ATK leadership to review the planned merger of its aerospace and defense businesses with the rocket’s manufacturer Orbital Sciences, ATK has decided to follow through with the move, according to a Nov. 17 announcement. “Since the incident, the companies have conducted a thorough review and analysis of the launch failure and Orbital’s proposed recovery plan and long-term competitive position,” the statement reads. “Following this review, ATK’s board of directors continues to support the strategic merits of the transaction and recommends that ATK stockholders vote to approve the issuance of shares to Orbital stockholders. Orbital’s board of directors also continues to recommend that Orbital stockholders vote to approve the proposed transaction.” ATK has decided to move its special stockholder meeting regarding the merger from Dec. 9 to Jan. 27, and its merger date from Jan. 31 to sometime in February, according to the statement.
ATK’s defense arm builds propulsion systems for Minuteman 3 and Trident 2 missiles, and its Launch Systems division is one of four businesses composing the Consolidated Nuclear Security team that manages the Y-12 and Pantex facilities. "During the course of the last two weeks, both companies have diligently evaluated and analyzed information relating to the Antares incident and Orbital’s go-forward plan," the statement quoted Mark DeYoung, ATK President and Chief Executive Officer, as saying. "We believe it was responsible and essential to conduct this special due diligence and as a result of our findings, management and our board of directors continue to endorse the previously announced transaction. The strategy to spin off our sporting business and merge our [aerospace and defense] businesses with Orbital supports long-term value creation, enhances the competitive position of both our sporting and A&D businesses, and makes long-term sense for our shareholders, employees, company, and our very diverse set of customers." Along with DeYoung, CFO Neal Cohen and Director of Investor Relations Michael Pici will host an ATK conference call at 4:30 p.m. tomorrow to update investors on the proposed merger and spinoff of ATK’s sporting group.
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