Alliant Techsystems Agrees to Buy PSI Group

Alliant Techsystems Inc., the largest maker of rocket motors and small-caliber ammunition for the U.S. military, said Monday that it agreed to buy satellite-components maker PSI Group to gain more business in space technology. Terms were not disclosed.

PSI, based in City of Commerce, has annual sales of about $100 million and about 350 workers. The purchase is expected to close next month, Alliant spokesman Bryce Hallowell said.

Alliant Chief Executive Daniel Murphy is making acquisitions to boost sales and to expand beyond bullets and motors. Excluding PSI, Edina, Minn.-based Alliant has spent more than $255 million in the last 18 months on four companies in the fields of satellite parts, hypersonic engines and infrared sensors. Sales last year climbed 8.9% to $2.37 billion.

PSI, which is majority owned by New York-based Windward Capital Partners, is the world’s largest provider of pressure tanks for satellites and launch vehicles. It also makes telescoping booms for launch and recovery of space hardware and solar arrays used to power spacecraft.

Alliant’s recent acquisitions include two units of Allied Aerospace for about $40 million in November. The units make hypersonic engines that burn oxygen. Murphy spent $215 million for infrared sensor-maker Mission Research Corp. in March and bought Composite Optics Inc. in 2003 for an undisclosed price.

Shares of Alliant rose 19 cents to $65.22 on the New York Stock Exchange. They have risen 24% in the last year.