TIDMCHG
RNS Number : 3551V
Chemring Group PLC
08 April 2019
FOR IMMEDIATE RELEASE
5th April 2019
CHEMRING GROUP PLC ("Chemring", the "Group" or the
"Company")
Disposal of Chemring Military Products, Inc.
Chemring today announces completion of the sale of its military
trading business Chemring Military Products Inc. ("CMP") to Global
Ordnance LLC ("Global Ordnance") for a cash consideration of $4
million.
Following a strategic review, the Group announced in November
2018 its intention to exit the commoditised Energetics businesses,
located in Derby and Florida, and to focus on the niche specialist
energetic devices and materials businesses in Chicago, Scotland and
Norway, where the Group has strong intellectual property and high
barriers to entry.
CMP, located in Perry, Florida, procures and delivers worldwide
US-standard and non-standard ammunition, and weapons systems. In
the year ended 31 October 2018, CMP generated revenues of $111
million, an operating profit of $11 million, had gross assets of
$19 million and net assets of $3 million. The business was treated
as discontinued in the Group's 2018 financial statements and for
the year ended 31 October 2019 was not expected to make a material
contribution to Group operating profit.
$2.5 million of the consideration was paid on completion.
Additional payments of $1 million and $0.5 million are due on the
first and second anniversaries of completion respectively.
The proceeds after costs will be used by the Group for general
corporate purposes.
Global Ordnance is a Veteran Owned Small Business that responds
to the critical needs of the US Government and its allies
worldwide. Global Ordnance is a trusted partner of US Special
Operations Command and the US Army, providing them with the
products and services they depend upon.
Processes to exit the Group's remaining commoditised energetics
businesses in Florida and Derby are ongoing. The Group will provide
further updates when appropriate.
Michael Ord, Chief Executive of Chemring, said:
"I am pleased to announce the sale of Chemring Military Products
to Global Ordnance. This follows our decision to exit the
commoditised Energetics businesses and will enable a greater focus
on our growing and differentiated positions in Countermeasures
& Energetics and Sensors & Information, and will improve
the quality of the Group and its earnings."
- ENDS -
For further information:
Rupert Pittman Group Director of Corporate Affairs, Chemring Group PLC +44 (0)1794 833901
Andrew Jaques
Peter Hewer MHP Communications +44 (0)20 3128 8100
Cautionary statement
This announcement contains unaudited information based on
management accounts and forward-looking statements that are based
on current expectations or beliefs, as well as assumptions about
future events. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current
facts. Forward-looking statements often use words such as
anticipate, target, expect, estimate, intend, plan, goal, believe,
will, may, should, would, could, is confident, or other words of
similar meaning. Undue reliance should not be placed on any such
statements because they speak only as at the date of this document
and, by their very nature, they are subject to known and unknown
risks and uncertainties and can be affected by other factors that
could cause actual results, and Chemring's plans and objectives, to
differ materially from those expressed or implied in the
forward-looking statements.
There are a number of factors which could cause actual results
to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause
actual results to differ materially from those described in the
forward-looking statements are; increased competition, the loss of
or damage to one or more key customer relationships, changes to
customer ordering patterns, delays in obtaining customer approvals
for engineering or price level changes, the failure of one or more
key suppliers, the outcome of business or industry restructuring,
the outcome of any litigation, changes in economic conditions,
currency fluctuations, changes in interest and tax rates, changes
in raw material or energy market prices, changes in laws,
regulations or regulatory policies, developments in legal or public
policy doctrines, technological developments, the failure to retain
key management, or the key timing and success of future acquisition
opportunities or major investment projects.
Chemring undertakes no obligation to revise or update any
forward-looking statement contained within this announcement,
regardless of whether those statements are affected as a result of
new information, future events or otherwise, save as required by
law and regulations.
Notes to editors
-- Chemring is a global business that specialises in the
manufacture of high technology products and the provision of
services to the aerospace, defence and security markets
-- Employing approximately 2,500 people worldwide, and with
production facilities in four countries, Chemring meets the needs
of customers in more than fifty countries
-- Chemring is now organised under two strategic product
segments: Countermeasures & Energetics, and Sensors &
Information
-- Chemring has a diverse portfolio of products that deliver
high reliability solutions to protect people, platforms, missions
and information against constantly changing threats
-- Operating in niche markets and with strong investment in
research and development, Chemring has the agility to rapidly react
to urgent customer needs
www.chemring.co.uk
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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