Eagle Industries Sold to Alliant Techsystems

Deal closed today

Eagle Industries’ Combat Integrated Armor Carrier System

Alliant Techsystems Inc. today purchased Eagle Industries Unlimited Inc. for an undisclosed amount. Alliant is a Minnesota-based aerospace and defense company. Eagle makes nylon safety gear for the military and law enforcement agencies.

More on Eagle Industries

Eagle makes several products, most of them nylon-based. The company sells weapon holsters, bags, rappelling equipment and vests. The company has about 2,300 employees. Eagle headquarters is in Fenton, Mo.

It also has facilities in New Bedford, Mass., Lares and Mayaguez, Puerto Rico, and the Dominican Republic. Its main client is the U.S. Department of Defense. It’s possible military loans made up part of the company’s earnings.

More on Alliant Techsystems

Alliant is commonly known by its ticker symbol, ATK. The large aerospace and defense company has revenue of more than $4.5 billion. ATK has more than 19,000 employees.

Eagle will add more than $80 million to Alliant’s sales in fiscal 2010, according to Minneapolis/St. Paul Business Journal.

Everybody’s happy

Both Eagle Industries and Alliant Techsystems see the acquisition as a positive step. ATK is looking forward to expanding.

Eagle will provide Alliant “with an exciting opportunity to expand its presence into the growing military and law enforcement accessories markets,” ATK chairman and CEO Dan Murphy said in a statement.

Eagle appears equally optimistic about the future.

“By joining forces with ATK, we will be even better equipped to support the soldier and other customers while growing our business in ways we could not have done alone,” Scott Carver, Eagle Industries vice president and general manager, said in a statement.

Positive stock response

ATK says Eagle will become part of its Armament Systems Group. Today, following the news of the purchase, ATK’s stock went up 3.6 percent. That’s a gain of $2.31 per share, bringing the company’s total to $66.31 per share.

A little history

Eagle Industries in November 2007 purchased Michael Bianco Inc. Earlier that year, Bianco was the site of a raid by U.S. Immigration and Customs Enforcement agents. A total of 361 workers were detained at the leather goods factory and Defense Department contractor, on charges they were illegal immigrants.