By Calvin Biesecker
ATK [ATK] yesterday said it has acquired Blackhawk Industries Products Group Unlimited, LLC, a manufacturer and provider of tactical accessories and equipment for the security market, complementing the company’s purchase a year ago of Eagle Industries, which positioned it in the growing security market.
Terms of the deal for Blackhawk were not disclosed and ATK didn’t say if it would be accretive to earnings. The company will provide additional details when it updates its FY ’11 guidance.
While the Eagle acquisition a year ago gave ATK a footprint in the military market for tactical equipment, Blackhawk is better positioned within the law enforcement and security markets. Moreover, the acquisition gives ATK access to new distribution channels, adds product design and development expertise, and will allow it to obtain cost synergies, ATK told Defense Daily.
Blackhawk, which is based in Virginia and is a brand name in the tactical accessories business, primarily serves the domestic market. Most of its sales are through distributors and over the Web.
When it purchased Eagle last year, ATK said that deal would position it in the rapidly growing security market, pegged at about $1.5 billion annually (Defense Daily, April 1, 2009).
“The acquisition of Blackhawk supports our strategy of expanding into adjacent lanes while leveraging ATK’s existing core competencies to deliver efficient growth and EPS (earnings per share),” Mark DeYoung, ATK’s president and CEO, said in a statement. “Blackhawk provides ATK with a leading tactical systems brand, an expanded portfolio of quality products, and additional design and development expertise for innovative tactical accessories. This acquisition significantly increases our presence and our potential in the growing domestic and international security markets.”
The tactical accessories market is highly fragmented. ATK said it plans to continue growing in this space through organic sales and acquisitions.
In addition to the law enforcement market, Blackhawk also serves the military, international military and sport recreation markets. In December, the company announced a multi- million dollar contract to provide holsters for the Colombian National Police. The company has manufacturing facilities in North Carolina, Montana and Idaho. It will become a division of ATK’s Security and Sporting Group.
Blackhawk’s financial adviser on the deal was Wells Fargo.
Blackhawk provides a wide range of tactical gear such as armor, packs, load bearing harnesses, vests, footwear, holsters, belts and more.