ATK announced a two-part deal Tuesday that would create a separate business for its commercial ammunition and other sporting good products.
On its own, the sporting group would employ 5,800 people in 11 states and other countries and be based in Utah. No name has yet been selected for the new company. The CEO would be Mark DeYoung, who serves in that role for ATK.
The transaction would be followed by another where the two remaining segments of ATK - aerospace and defense - would merge with Orbital Sciences Corp., which like ATK is based in Virginia.
That company would be called Orbital ATK, be headquartered in Dulles, Va., the present home of Orbital Sciences, and employ about 13,000 people. Orbital CEO David Thompson would step into the same post after the merger.
Operations that make military ammunition will be housed with Orbital ATK because, like the defense and aerospace operations, they have to meet armed forces requirements.
ATK shareholders would own 100 percent of the company, according to a news release, made by spinning off the sporting group.
Orbital shareholders would receive 0.449 shares of ATK common stock for each Orbital share they hold.
ATK shareholders would own 53.8 percent of the company, created by combining ATK's aerospace and defense segments with Orbital; Orbital shareholders would own the remainder.
It appears the proposed corporate restructuring will have little effect on the day-to-day operations of ATK in Lewiston.
ATK executives said in a Tuesday conference call for stock analysts that they will maintain competitive employee compensation packages after the spin-off. No specific mention of Lewiston was made in the call, or in the news release issued Tuesday.
The plan still has to clear a number of hurdles that include obtaining regulatory approvals before the deal is completed.