Chemring to acquire US rival for £55m

MILITARY equipment maker Chemring is to spend $90m (£55m) buying a business that supplies the US military with devices for detecting chemical and biological threats.
By The Newsroom
Published 21st Apr 2011, 09:53 BST

Chemring said yesterday that it had agreed to buy the Detection Systems operations and other related assets from General Dynamics Corporation in a cash deal that will be funded through the issue of new shares.

Detection Systems, based in Charlotte, North Carolina, generated a pre-tax profit of $8.3m last year on revenues of $61.5m and the acquisition is expected to boost earnings at Chemring as of next year. Chemring said the deal would enhance its existing operations supplying devices to detect improvised explosive devices.

Hide Ad
Hide Ad

As well as existing contracts to supply the US military with vehicle-mounted biological and chemical agent detectors, Chemring said Detection Systems’ other products include a stand-off explosives detector and hand-held chemical detector.