Alliant Techsystems Inc. (ATK) said that it is partnering a Polish company for selling energetic products (explosives) manufactured by that company. Alliant has signed a long-term international distribution deal with Zaklady Chemiczne, also known as Nitro-Chem.
This deal will combine Alliant’s expertise in supply chain management and worldwide marketing and distribution of energetic materials with Nitro-Chem’s unique manufacturing capabilities.
Under the deal, Alliant will sell Nitro-Chem-produced TNT for both military and commercial applications as well as other explosive products and compounds, including boosters for commercial mining and construction, RDX, HMX, Comp B, and DNT.
Through this deal Alliant expects to diversify its business by expanding into the commercial energetics market. This partnership also offers the company growth opportunities in both the domestic and international markets.
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.
Last week, Alliant announced that it is moving its corporate headquarters from Minnesota to Northern Virginia, on October 1, 2011, in order to better serve its federal customers and partners as well as expand its international footprint. The company’s new headquarters will be at Arlington, Virginia.
With this movement, Alliant plans to expand its existing base of about 50 employees in Arlington, while also continuing to maintain its strong presence in Minnesota. In total, the company employs nearly 2700 people in Minnesota and about 3500 people at its facilities in Maryland, Virginia and West Virginia.
We retain our long-term Neutral recommendation on the stock, supported by a short-term Zacks #3 Rank (Hold). On a competitive landscape, the company is ranked at par with its closest peers General Dynamics Corp. (GD) and Northrop Grumman Corp. (NOC), who also carry a Zacks #3 Rank.
