



May 22, 2013
Defense Contractor ATK to Buy Savage in $315M Deal
By Phil Bourjaily

Alliant Techsystems (ATK) has announced the purchase of Savage Sports for $315 million. Currently there are few details and the people I know at ATK Sporting aren't ready to talk much about the deal.
ATK is a $4.8 billion Fortune 500 company with aerospace, defense and sporting divisions. They make the solid rocket engines that put the space shuttle into orbit as well as Bushmaster chain guns and 120mm rounds for battle tanks. ATK bought Federal Premium Ammunition about ten years ago and has since added several companies—Weaver, Blackhawk!, RCBS, Speer Ammo—to ATK Sporting headquarted in Anoka, MN (also the home of Federal).
Savage, of course, is one of the most famous names in American gunmaking, dating back to 1894, and currently employs about 600 workers. The Westfield, Massachusetts company almost went under in the 1990s but came back under the leadership of CEO Ron Coburn, who downsized the company and focused on making the one gun Savage made best: the very accurate Model 110 bolt action.
ATK seems committed to the companies in its sporting division—certainly Federal has thrived under ATK ownership—and I would predict the new owners will treat Savage well. We may even seen Savage 110 rifles chambered for new Federal calibers in the near future, who knows?
Comments (20)
I hope it works out well for both companies. I like the 110's; but I really hope they find a way to produce the 99 economically and can bring it back.
I had to google the Bushmaster chain gun. 25mm... I know an inch is 25.4 mm so that is one bad mother.
I have a special place in my heart for Savage. I had a .22/.410 over under when I was a kid and I probably shot it more than any other gun we owned. My dad was a bird hunter so he never really owned any rifles and that Savage was the only .22 in the house. It was my best friend. I hope they live long and prosper.
I'm glad that it is an American company, and not the Herstal Group in Belgium which already owns Winchester, Fabrique Nationale (FN) and the Browning Arms Company.
I hope they keep Rob Coburn as CEO. He really turned them around. The most accurate rifles that I own are by Savage.
I read the Coburn retired.
I'm torn. Savage gets a big brother. Good.
I'm also worried that Savage being now part of a "defense contractor" will make it a target for frivolous gun-related injury lawsuits.
Bring back the 99. People would have paid for it, and now prospects seem better with modern manufacturing. There's no reason they can't machine the rotary magazine (and maybe even the cartridge counter portion) and the other fine parts well enough to require minimal hand-fitting. Might as well chamber it in .338 Federal, now.
It was already chambered in .358 Short Whelen years ago!
What a wonderful name for a firearm!
The solid frame 99s shoot every bit as well as any of the bolt actions of their day...
Better to be owned by an operating company than a private equity group. I don't know how ATK in particular works, but many defense/industrial conglomerates try to make each PnL within each division profitable, which would essentially mean Savage continues to operate as normal, just with deeper resources to draw on. Depending on the group, private equity can be a lot more interested in shaking out whatever cash they can in a relatively short term.
I too hope this bodes well as GE Financial apparently is telling anyone involved with firearms to drop dead when it comes to a loan. Kinda of interesting that GE will sink money into windfarms that kill millions of birds and bats that get a pass from the Jughead administration and also doesn't pay any taxes to the US. But who would have thought that the IRS and big business would ever connive to control a market.
I do hope this 3rd attemp to post works... I agree that the purchase is a good thing for all concerned, with a reservation: While there would be worker displacement and brain drain, I would like to see the new arrangement pull out of the high-tax, anti-gun state in which they reside and do a Magpul: go to a gun- and industry-friendly state with lower taxes. The operating expenses saved would likely make it feasible to bring back the 99 in an affordable rifle. Would that ALL of the gun manufacturers do so. Les Baer sleeps better at night, I imagine, not worrying that he'll wake up a felon one day by overnight legislation.
Mick they are based about 30 miles from me and I've had friends working there since I was young Boy Scout and love that they have always been local. They are my favorite firearms company by quite a bit. S & W is about as close and Colt is about 50 miles. I'd love to see all three pick up and move. I'd really love for it to be NH or VT since they'd still be in the area, but I'd still be happy about Idaho, Texas, Az or any of the States that respect individual rights.
What a joke ATK is anything but committed just so everyone is aware they are getting ready to layoff over 1000 people at their lake city ammunition plant in independence mo. This was just annoused this week and what they were told by the the head man because of the economy wow what a lie some how they found 315 million to buy another company.Everybody can do what they want but with my family working their and posssibly geeting ready to lose their job i will not buy any thing ATK is a part of and i wish others would consider doing the same.There are a lot of good people with alot of time in with this company that are getting ready to be put on the street.
Bob, I realize your upset that this company laying off family members angers you, but you have to realize they employ a 100x more than what they're laying off and if everyone had the attitude you do many more people would be put in the unemployment line. Also after researching this I found out this is a government owned facility with ATK having the contract staffing the facility. So in reality they are forced to do this and they are also offering voluntary layoffs which is considerate allowing all employees to make the decision. This will not however cover the entire 1000 employees but it will keep some from having to be forced out of the job. Your family still has a chance of keeping their job. ATK is reducing their staff at this facility from 2,600 to 1,600 so this doesn't mean your family is automatically out unless they're poor performers.
The problem I have with Savage is they don't belive in making a better product unless they have to. I asked a while back if they would make a 5.56 NATO barrel with a 1-9 twist for the Encore, NOPE AND NOT GOING TO HAPPEN THE FELLA SAID! Worked for me? I'd fire the him on the spot!
will Savage redesign the sniper rifle?
@Clay Cooper
So you'd fire someone because they were honest and forthright with you instead of stringing you along with a lie? Who did your lobotomy?
ATK will likely position Savage more aggressively for the LE and armed forces markets. Great, high-value precision rifles, esp for LE who are watching every penny.
To Dcast its funny when someone says they did research on something i guess in your research you did not find that the employees that are being layed off are being replaced by temp. employees at a cheaper wage.Also the layoffs are not based on performance and the buy out is an early retirement option and the employees work for ATK not the government the plant is owned by the government and ATK has a contract to run the plant just like Olin did but i guess in your research you did not find that.Also they hired a third party firm to do a wage comp. with like industries in the area and they were told they make to much and all raises were being stoped except for salary employees the problem with that is there are no compariable industries in the area so you my want to do some more research becuase i have plenty more of factual proof i could post.
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I hope it works out well for both companies. I like the 110's; but I really hope they find a way to produce the 99 economically and can bring it back.
I had to google the Bushmaster chain gun. 25mm... I know an inch is 25.4 mm so that is one bad mother.
I have a special place in my heart for Savage. I had a .22/.410 over under when I was a kid and I probably shot it more than any other gun we owned. My dad was a bird hunter so he never really owned any rifles and that Savage was the only .22 in the house. It was my best friend. I hope they live long and prosper.
I hope they keep Rob Coburn as CEO. He really turned them around. The most accurate rifles that I own are by Savage.
Bring back the 99. People would have paid for it, and now prospects seem better with modern manufacturing. There's no reason they can't machine the rotary magazine (and maybe even the cartridge counter portion) and the other fine parts well enough to require minimal hand-fitting. Might as well chamber it in .338 Federal, now.
I do hope this 3rd attemp to post works... I agree that the purchase is a good thing for all concerned, with a reservation: While there would be worker displacement and brain drain, I would like to see the new arrangement pull out of the high-tax, anti-gun state in which they reside and do a Magpul: go to a gun- and industry-friendly state with lower taxes. The operating expenses saved would likely make it feasible to bring back the 99 in an affordable rifle. Would that ALL of the gun manufacturers do so. Les Baer sleeps better at night, I imagine, not worrying that he'll wake up a felon one day by overnight legislation.
I'm glad that it is an American company, and not the Herstal Group in Belgium which already owns Winchester, Fabrique Nationale (FN) and the Browning Arms Company.
It was already chambered in .358 Short Whelen years ago!
Mick they are based about 30 miles from me and I've had friends working there since I was young Boy Scout and love that they have always been local. They are my favorite firearms company by quite a bit. S & W is about as close and Colt is about 50 miles. I'd love to see all three pick up and move. I'd really love for it to be NH or VT since they'd still be in the area, but I'd still be happy about Idaho, Texas, Az or any of the States that respect individual rights.
What a joke ATK is anything but committed just so everyone is aware they are getting ready to layoff over 1000 people at their lake city ammunition plant in independence mo. This was just annoused this week and what they were told by the the head man because of the economy wow what a lie some how they found 315 million to buy another company.Everybody can do what they want but with my family working their and posssibly geeting ready to lose their job i will not buy any thing ATK is a part of and i wish others would consider doing the same.There are a lot of good people with alot of time in with this company that are getting ready to be put on the street.
I read the Coburn retired.
I'm torn. Savage gets a big brother. Good.
I'm also worried that Savage being now part of a "defense contractor" will make it a target for frivolous gun-related injury lawsuits.
What a wonderful name for a firearm!
The solid frame 99s shoot every bit as well as any of the bolt actions of their day...
Better to be owned by an operating company than a private equity group. I don't know how ATK in particular works, but many defense/industrial conglomerates try to make each PnL within each division profitable, which would essentially mean Savage continues to operate as normal, just with deeper resources to draw on. Depending on the group, private equity can be a lot more interested in shaking out whatever cash they can in a relatively short term.
I too hope this bodes well as GE Financial apparently is telling anyone involved with firearms to drop dead when it comes to a loan. Kinda of interesting that GE will sink money into windfarms that kill millions of birds and bats that get a pass from the Jughead administration and also doesn't pay any taxes to the US. But who would have thought that the IRS and big business would ever connive to control a market.
Bob, I realize your upset that this company laying off family members angers you, but you have to realize they employ a 100x more than what they're laying off and if everyone had the attitude you do many more people would be put in the unemployment line. Also after researching this I found out this is a government owned facility with ATK having the contract staffing the facility. So in reality they are forced to do this and they are also offering voluntary layoffs which is considerate allowing all employees to make the decision. This will not however cover the entire 1000 employees but it will keep some from having to be forced out of the job. Your family still has a chance of keeping their job. ATK is reducing their staff at this facility from 2,600 to 1,600 so this doesn't mean your family is automatically out unless they're poor performers.
The problem I have with Savage is they don't belive in making a better product unless they have to. I asked a while back if they would make a 5.56 NATO barrel with a 1-9 twist for the Encore, NOPE AND NOT GOING TO HAPPEN THE FELLA SAID! Worked for me? I'd fire the him on the spot!
will Savage redesign the sniper rifle?
@Clay Cooper
So you'd fire someone because they were honest and forthright with you instead of stringing you along with a lie? Who did your lobotomy?
ATK will likely position Savage more aggressively for the LE and armed forces markets. Great, high-value precision rifles, esp for LE who are watching every penny.
To Dcast its funny when someone says they did research on something i guess in your research you did not find that the employees that are being layed off are being replaced by temp. employees at a cheaper wage.Also the layoffs are not based on performance and the buy out is an early retirement option and the employees work for ATK not the government the plant is owned by the government and ATK has a contract to run the plant just like Olin did but i guess in your research you did not find that.Also they hired a third party firm to do a wage comp. with like industries in the area and they were told they make to much and all raises were being stoped except for salary employees the problem with that is there are no compariable industries in the area so you my want to do some more research becuase i have plenty more of factual proof i could post.
Post a Comment