Alliant Techsystems Inc. concluded the tax-free spin-off of its Sporting Group business and created an independent company, Vista Outdoor Inc. The newly formed entity is trading on the New York Stock Exchange under the ticker symbol “VSTO,” effective today. In April 2014, Alliant Techsystems announced that its board of directors had approved a plan to form two independent public entities.
Per the spin-off agreement, shareholders of Alliant Techsystems obtained two shares of Vista Outdoor common stock in exchange of every share of Alliant Techsystems on the record date of Feb 2. Vista Outdoor engages in designing, manufacturing and marketing a wide array of performance-driven, high-standard and innovative sporting products.
Following the spin-off, Alliant Techsystems merged its Aerospace and Defense Groups with Orbital Sciences Corp. in a tax-free, all-stock transaction. The combined entity is currently operating as Orbital ATK, Inc. Shareholders of Orbital Sciences received 0.449 shares of Orbital ATK common stock for every share of Orbital Sciences common stock.
Orbital ATK will commence trading on the New York Stock Exchange under the ticker symbol “OA” from Feb 10, 2015, while Orbital Sciences will no longer trade in the exchange as an independent company.
Orbital ATK designs, constructs and supplies numerous space, defense and aviation-related systems, including launch vehicles and related propulsion systems, and precision weapons, armament systems and ammunition across the globe.
In time, we will know whether these two newly formed companies are able to meet their respective projected goals with quality workforce, sophisticated technical expertise, significant market presence and strong business tie-ups.
Stocks in the same sector worth considering include Spirit AeroSystems Holdings, Inc. (SPR) and Curtiss-Wright Corp. (CW). Spirit AeroSystems holds a Zacks Rank #1 (Strong Buy), while Curtiss-Wright carries a Zacks Rank #2 (Buy).
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