Defense and aerospace company Alliant Techsystems Inc. (ATK) said it will move its corporate headquarters from Minnesota to Northern Virginia in order to better serve its federal customers and partners as well as expand its footprint.
Alliant plans to relocate to its new headquarters in Arlington, Virginia, on October 1, 2011. The company already has a base in Arlington and plans to expand it in order to accommodate employees moving from Minnesota. The company’s present office in Virginia has about 50 employees.
However, Alliant indicated that it will continue to maintain its strong presence in Minnesota with about 210 Minnesota-based corporate employees. In total, the company employs nearly 2700 people in Minnesota and about 3500 people at its facilities in Maryland, Virginia and West Virginia.
The relocation to the Washington D.C. area will provide Alliant with opportunities for increased engagement with its U.S. government customers. The move will provide immediate access to its two largest customers – the Pentagon and NASA. In addition to strengthening its position in Virginia, the company’s presence in the Washington D.C. area will also help it to lobby for and grow its international business.
Furthermore, it will provide opportunities for tie-ups with its aerospace and defense industry peers already located in the region. The Washington area is home to many defense and aerospace giants like Northrop Grumman Corp. (NOC) and General Dynamics Corp. (GD), both based in Falls Church, Virginia. Moreover, the largest defense contractor in the world, Lockheed Martin Corp. (LMT), also has its headquarters in nearby Bethesda, Maryland.
Alliant Techsystems supplies aerospace and defense products to U.S. government agencies, and its prime contractors and sub-contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
We retain our long-term ‘Neutral’ recommendation on the stock, supported by a short-term Zacks #3 Rank (Hold).
