Business
Disposal of Chemring Military Products, Inc.
Disposal of Chemring Military Products, Inc..
About this update from Chemring Group Plc
[{"type":"text","content":"\n \nRNS Number : 3551V Chemring Group PLC 08 April 2019 \n\nFOR IMMEDIATE RELEASE 5th April 2019\n \nCHEMRING GROUP PLC (\"Chemring\", the \"Group\" or the \"Company\")\nDisposal of Chemring Military Products, Inc.\nChemring today announces completion of the sale of its military trading business Chemring Military Products Inc. (\"CMP\") to Global Ordnance LLC (\"Global Ordnance\") for a cash consideration of $4 million. \nFollowing a strategic review, the Group announced in November 2018 its intention to exit the commoditised Energetics businesses, located in Derby and Florida, and to focus on the niche specialist energetic devices and materials businesses in Chicago, Scotland and Norway, where the Group has strong intellectual property and high barriers to entry. \nCMP, located in Perry, Florida, procures and delivers worldwide US-standard and non-standard ammunition, and weapons systems. In the year ended 31 October 2018, CMP generated revenues of $111 million, an operating profit of $11 million, had gross assets of $19 million and net assets of $3 million. The business was treated as discontinued in the Group's 2018 financial statements and for the year ended 31 October 2019 was not expected to make a material contribution to Group operating profit. \n$2.5 million of the consideration was paid on completion. Additional payments of $1 million and $0.5 million are due on the first and second anniversaries of completion respectively. \nThe proceeds after costs will be used by the Group for general corporate purposes.\nGlobal Ordnance is a Veteran Owned Small Business that responds to the critical needs of the US Government and its allies worldwide. Global Ordnance is a trusted partner of US Special Operations Command and the US Army, providing them with the products and services they depend upon.\nProcesses to exit the Group's remaining commoditised energetics businesses in Florida and Derby are ongoing. The Group will provide further updates when appropriate.\...