The Alliant-built twin solid rocket boosters propel a Titan 4B rocket off the pad last August at Vandenberg Air Force Base, California. Photo: Lockheed Martin

Rocket motor maker Alliant Techsystems announced Wednesday it had reached an agreement to purchase Thiokol Propulsion for $685 million in cash. Alliant builds the solid-fueled boosters for Delta, Titan 4B, Pegasus and Taurus rockets; Thiokol manufactures the space shuttle solid rocket boosters.

The deal is between Alliant (ATK) and Thiokol's parent company, Alcoa.

The transaction, which has received all necessary corporate approvals of both companies, is subject to customary regulatory approvals. It is expected to close by the end of the second quarter of 2001.

Commenting on the announcement, Alcoa Chairman and CEO Alain Belda said, "This transaction is beneficial to all parties involved. It delivers value to Alcoa shareholders, and Thiokol becomes a strategic part of ATK, a company in the propulsion business and positioned to help Thiokol realize the full value of its products and technologies."

"This is a sound strategic acquisition that will deliver significant value to customers, employees and ATK shareholders," said Paul David Miller, chairman and chief executive officer of ATK. "When approved, we will have a blend of propulsion expertise, leadership spirit, and personal commitment to integrate effectively these businesses."

ATK said it expects the acquisition to be accretive to earnings by 5 to 10 cents per share in fiscal year 2002, which begins April 1, 2001.

Alcoa is the world's largest producer of primary aluminum, fabricated aluminum, and alumina and participates in all segments of the industry: mining, refining, smelting, fabricating and recycling.

ATK is a $1.1 billion aerospace and defense company with leading market positions in munitions, smart weapons/precision capabilities, propulsion, and composite structures. The company, which is headquartered in Hopkins, Minn., has three business segments: Conventional Munitions, Aerospace, and Defense Systems.