Alliant Techsystems

(ATK)

plans to acquire

Alcoa's

(AA) - Get Report

Thiokol Propulsion

business for $685 million in cash.

Thiokol supplies rocket propulsion systems for space launch vehicles and has sales of about $570 million. The sale still needs regulatory approval. Alliant, a supplier of aerospace and defense products based in Hopkins, Minn., expects to close the deal by the end of the second quarter.

Alliant expects the acquisition to add 5 cents to 10 cents to earnings in fiscal 2002, which begins April 1, 2001. Analysts surveyed by

First Call/Thomson Financial

expect the company to report fiscal 2001 earnings of $4.77 a share and fiscal 2002 earnings of $5.29 a share.

In recent

New York Stock Exchange

trading, shares of Alliant gained 36 cents, or 0.5%, to $68.65, while Alcoa rose 64 cents, or 1.8%, to $35.88.