US company Global Ordnance has bought the military trading business of Chemring Group PLC (LON:CHG) for US$4mln in cash.
Chemring said US$2.5mln of the consideration for its Chemring Military Products division was paid upfront, with the rest to be paid off over the next two years, with US$1mln due in April 2020 and the remainder in April 2021.
.@GlobalOrdnance completes acquisition of Chemring Military Products #GovCon https://t.co/Mc2IHX2AJ9
— GovCon_Wire (@GovConWire) April 8, 2019
Chemring regarded the business as discontinued.
Funds from the disposal will be used for general corporate purposes.
"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," declared Michael Ord, the chief executive officer of Chemring.
CASE OF 10 HV STL 20GA 2.75IN MAX .75OZ 2 25RD/BX, UPC :604544235425 #rifle #pistol
$91.87
— Global Ordnance (@GlobalOrdnance) April 4, 2019