Chemring Group PLC

Completion of disposal

RNS Number : 1819M
Chemring Group PLC
07 May 2020
 

 

FOR IMMEDIATE RELEASE                                                                                                      7 May 2020

CHEMRING GROUP PLC ("Chemring" or the "Group")

Completion of disposal

On 21 November 2019 Chemring announced that it had entered into a conditional agreement to sell its US subsidiary Chemring Ordnance, Inc. to Nammo Defense Systems Inc. for a cash consideration of $17 million. The sale was subject to both regulatory approval by the US authorities and a working capital adjustment on completion.

Chemring is pleased to announce today that all regulatory approvals have now been received and the sale process has now completed.

The final working capital adjustment will be agreed in the next 60 days in accordance with the sale and purchase agreement, but at this stage, the net proceeds are expected to be approximately $15 million. These proceeds will be used by the Group for general corporate purposes.

- ENDS -

For further information:

Rupert Pittman

Group Director of Corporate Affairs, Chemring Group PLC

+44 (0)1794 833901

Andrew Jaques

Oliver Hughes

MHP Communications

+44 (0)20 3128 8100

 

Notes to editors

1.  In November 2018 the Group announced that the future focus of its Energetics segment would be on its niche energetic devices and materials businesses in Chicago, Scotland and Norway. The Group also announced it would exit the commoditised energetics businesses in Derby and Florida; these businesses were treated as discontinued in the 2018 financial statements. In April 2019 the Group announced the sale of Chemring Military Products in Florida, and in June 2019 the Group announced the sale of Chemring Defence in Derby.

2.  Chemring Ordnance, located in Perry, Florida, manufactures a range of ordnance and pyrotechnic products primarily for military customers. In the year ended 31 October 2019, COR generated revenue of $38 million, an underlying operating loss of $3.0 million, had gross assets of $8.9 million and net assets of $7.2 million. The business was treated as discontinued in the Group's 2019 financial statements.  

3.  Nammo is an international aerospace and defence company headquartered in Norway. With 2,400 employees across more than 30 sites and offices in 13 countries, the company is one of the world's leading providers of ammunition and rocket motors for both military and civilian customers.  

4.  About Chemring

· 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 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

 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.

 

 


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