Acquisition
19 1월 2010 - 4:00PM
UK Regulatory
TIDMCHG
RNS Number : 7498F
Chemring Group PLC
19 January 2010
FOR IMMEDIATE RELEASE 19 JANUARY 2010
CHEMRING GROUP PLC
ACQUISITION OF THE ALLIED DEFENSE GROUP, INC.
Chemring Group PLC ("Chemring" or "the Group") announces that it has entered
into a conditional agreement to acquire the entire issued stock capital of The
Allied Defense Group, Inc. ("ADG"), a US public company traded on the NYSE AMEX,
for a cash consideration of $7.25 per share equating to $59 million (GBP36
million).
Description of the business and reasons for the acquisition
ADG, which is headquartered in Virginia, USA, has two principal operating
subsidiaries - Mecar S.A., based in Nivelles, Belgium, and Mecar USA, Inc.,
based in Marshall, Texas. Mecar S.A. is a niche manufacturer of medium and large
calibre ammunition, particularly for modern, light armoured vehicles ("LAVs").
Mecar USA provides load, assemble and pack and procurement services for the US
Government and prime contractors.
In the year ended 31 December 2008, ADG reported an audited operating profit,
before non-recurring head office costs, of $9.7 million (GBP6.0 million) on
revenue of $144 million (GBP88 million). Gross assets as at that date were $104
million (GBP64 million). ADG's unaudited revenue for the nine months to 30
September 2009 was $115 million (unaudited nine months to 30 September 2008:
$116 million). The acquisition is expected to enhance Chemring's earnings in the
first full financial year post-completion.*
The acquisition of ADG brings to Chemring complementary markets, products and
technologies. ADG has a strong presence in the Middle East, complementing
Chemring's current emphasis on NATO customers. As a prime contractor, ADG's
focus on ammunition for LAVs fits well with Chemring's leading position in naval
ammunition. Finally, the acquisition of ADG creates an internal customer for
Chemring's propellants, explosives and fuzes, whilst its precision machining
capacity should be able to supply a growing Group requirement for metal parts.
Principal terms of the acquisition
The cash consideration of $59 million (GBP36 million) will be funded from the
proceeds of the private placement of $280 million of fixed interest loan notes
completed by the Group in November 2009.
The net debt of ADG assumed by Chemring on completion of the acquisition will be
negligible. However, costs of approximately $5 million (GBP3 million) will be
incurred in closing the ADG head office in the USA, and short-term investment in
working capital in the region of $15 million (GBP9 million) will be required.
This, therefore, produces an overall enterprise value for ADG of approximately
$79 million (GBP48 million).
Completion, which is anticipated within ninety days, is conditional upon, inter
alia, US regulatory and ADG shareholder approvals.
Commenting on the acquisition, David Price, Chief Executive of Chemring, said:
"The acquisition of The Allied Defense Group will significantly enhance our
business within the global ammunition and ammunition-related service markets. It
provides a complementary range of products and manufacturing technologies, and
increases the strength of our product engineering capabilities. I am confident
that the combined business will provide a strong platform for growth and create
a world leader in these markets."
* This statement should not be taken to mean that the earnings per share of
Chemring will necessarily match or exceed the historical reported earnings per
share of Chemring and no forecast is intended or implied.
For further information:
Dr David Price Chief Executive, Chemring Group PLC 01489 881880
Paul Rayner Finance Director, Chemring Group PLC 01489 881880
Rupert Pittman Cardew Group 0207 930 0777
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQEAPFPFLEEEFF
Chemring (LSE:CHG)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Chemring (LSE:CHG)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024
