21st Nov 2019 10:48
(Alliance News) - Defence & engineering firm Chemring Group PLC has sold its US Ordnance business for USD17 million in cash, it said on Thursday.
Chemring Ordnance, which is based in Perry, Florida, has been sold to Nammo Defense Systems Inc. The sale represents an exit from the commoditised energetics market, Chemring said.
The unit posted revenue of USD57 million in the year to October 2018, with an underlying operating loss of USD200,000.
Norway-based Nammo is an aerospace & defence company, and Chemring said it is one of the world's leading providers of ammunition and rocket motors.
Chemring Chief Executive Michael Ord 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 & Information and Countermeasures & 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."
In April, Romsey-based Chemring sold its military trading business for USD4 million to Global Ordnance LLC, having announced a plan in November 2018 to sell Energetics operations.
Chemring shares were 0.7% higher in London on Thursday morning at a price of 189.40 pence each.
By George Collard; [email protected]
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