April 23 2019

KippsDeSanto & Co. advises Chemring Group PLC on the Sale of Chemring Military Products to Global Ordnance

KippsDeSanto & Co. is pleased to announce that it has advised on the sale of Chemring Military Products (“CMP” or the “Company”), a subsidiary of CHG Group, Inc., to Global Ordnance. The transaction expands Global Ordnance’s customer access, while helping our client, Chemring Group PLC (LSE:CHG), pursue its strategic initiatives of reshaping its defense and security portfolio.

Based in Perry, FL, CMP is one of the largest suppliers of non-standard ammunition and ordnance to the U.S. Government and allied militaries. The Company has direct access to ammunition and weapon systems, including small, medium, and large caliber direct and indirect fire systems. The Company also supplies law enforcement personnel with high-quality and competitively priced ammunition, pyrotechnics, and weapons systems. CMP partners with domestic and international customers and utilizes its core competencies in supply chain and program management, quality assurance, and logistics to deliver best-value solutions.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

• Continued use of divestitures for portfolio shaping in line with shifting strategic plans

• Intrinsic value of entrenched customer relationships throughout the defense industrial base

• Driving value through the ability to realize operational and production synergies

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