The PSI Group is a leader in the design and manufacture of components for military and commercial space-based applications, including global positioning, navigation and communication satellites, satellite bus structures, struts, reflectors and deployable mast booms.
The acquisition strengthens ATK's advanced space systems portfolio and positions it to capture emerging opportunities in spacecraft integration and satellite technology.
The company expects to increase its content on missions while expanding into new advanced space technology roles. The $165 million purchase price represents approximately eight times PSI's anticipated full year earnings before income, taxes, depreciation and amortization (EBITDA).
ATK is raising its FY05 earnings per share guidance to $3.90 to $4.00 per share. Previous guidance was $3.85 to $3.95 per share.
In addition, the company is increasing its FY05 sales guidance to $2.75 billion from $2.7 billion. With planned pre-payments in excess of $100 million, ATK now expects FY05 year-end debt to be less than $1.15 billion.