Chemring to sell US subsidiary, Chemring Ordnance
Chemring’s US subsidiary, Chemring Ordnance, is to be sold to Nammo Defense Systems, Chemring announced on 21 November.
The companies have entered into a conditional agreement for the sale, which is subject to regulatory approval by the US authorities. It is expected to be complete no later than the end of Q2 FY20.
Chemring Ordnance manufactures a range of ordnance and pyrotechnic products primarily for military customers.
Following a strategic review, Chemring Group announced in November 2018 its intention to exit the commoditised energetics businesses located in Derby and Florida, and to focus on its niche specialist energetic devices and materials businesses in Chicago, Scotland and Norway, where the group has strong intellectual property and high barriers to entry.
Michael Ord, chief executive of Chemring, said: ‘I am pleased to announce the sale of Chemring Ordnance to Nammo. This transaction is another step in the delivery of our strategy and provides a greater focus on our growing and differentiated positions in sensors and information, and countermeasures and energetics. Today’s announcement concludes the process of exiting the group’s commoditised energetics businesses and further improves the quality of the group and its future earnings.’
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