30th May 2006 08:20
FOR IMMEDIATE RELEASE 30 MAY 2006 CHEMRING SELLS MARINE LIGHTS BUSINESS Chemring Group PLC ("Chemring") announces that it has agreed a conditional saleof its McMurdo marine lights business (the "Lights Business") to DaniamantLimited ("Daniamant") for a cash consideration of ‚£2.85 million. Followingreceipt of a cash deposit of ‚£0.25 million, ‚£2.32 million will be paid in cashat completion and deferred consideration of ‚£0.28 million will be paid on thefirst anniversary of completion. The proceeds will be used to reduce net debt.The Lights Business, which is a division of Chemring's UK-based subsidiary,McMurdo Limited, manufactures and supplies marine lights for lifejackets andliferafts.In the year to 31 October 2005, the Lights Business made an audited pre-taxprofit of ‚£0.2 million on sales of ‚£3.6 million. The gross assets (includinggoodwill of ‚£1.4 million) of the Lights Business at 31 October 2005 were ‚£3.0million.Completion, which is conditional upon the transfer of certain productapprovals, is expected to take place before the end of June.Dr David Price, Chief Executive of Chemring, commented: "I am pleased toannounce the sale of our marine lights business to Daniamant, which already hasa similar operation in Denmark and is a good strategic fit for the business.The disposal represents the initial step in our strategy to divest all of ourmarine electronics activities and focus the core business on countermeasuresand energetics."For further information:Dr David Price, Chief Executive Chemring Group PLC 01489 881880Paul Rayner, Finance Director Chemring Group PLC 01489 881880Rupert Pittman Cardew Group 0207 930 0777ENDCHEMRING GROUP PLCRelated Shares:
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