Transactions
May 26 2020
KippsDeSanto & Co. Advises Chemring Group PLC on the Sale of Chemring Ordnance, Inc. to Nammo Defence Systems Inc.
KippsDeSanto & Co. is pleased to announce that it has advised on the sale of Chemring Ordnance, Inc. (“COR” or the “Company”), a subsidiary of CHG Group, Inc., to Nammo Defence Systems Inc. The transaction expands Nammo’s customer access, while helping our client, Chemring Group PLC (LSE:CHG), pursue its strategic portfolio shaping initiatives.
Based in Perry, FL, COR manufactures a range of ordnance and pyrotechnic products primarily for the U.S. Department of Defense, as well as foreign defense agencies. The Company’s flagship product is utilized for counter-Improvised Explosive Device (“IED”) requirements, allowing its operators to quickly and safely deploy a system to neutralize potential minefields and similar threats. COR also produces a variety of ammunition products utilized in land and sea missions, along with fuzing for various grenade systems. In addition to its suite of products, the Company offers ammunition design, testing, and load, assemble, and pack (“LAP”) services. With its extensive product line and intimate customer relationships, the Company is favorably poised to accelerate its overall growth and development. The transaction was originally announced on November 21, 2019; it closed on May 6, 2020, subsequent to regulatory requirements.
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
LEAD INVESTMENT BANKERS
Karl M. Schmidt
Brian T. Tunney
KippsDeSanto & Co. is pleased to announce that it has advised on the sale of Chemring Ordnance, Inc. (“COR” or the “Company”), a subsidiary of CHG Group, Inc., to Nammo Defence Systems Inc. The transaction expands Nammo’s customer access, while helping our client, Chemring Group PLC (LSE:CHG), pursue its strategic portfolio shaping initiatives.
Based in Perry, FL, COR manufactures a range of ordnance and pyrotechnic products primarily for the U.S. Department of Defense, as well as foreign defense agencies. The Company’s flagship product is utilized for counter-Improvised Explosive Device (“IED”) requirements, allowing its operators to quickly and safely deploy a system to neutralize potential minefields and similar threats. COR also produces a variety of ammunition products utilized in land and sea missions, along with fuzing for various grenade systems. In addition to its suite of products, the Company offers ammunition design, testing, and load, assemble, and pack (“LAP”) services. With its extensive product line and intimate customer relationships, the Company is favorably poised to accelerate its overall growth and development. The transaction was originally announced on November 21, 2019; it closed on May 6, 2020, subsequent to regulatory requirements.
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
LEAD INVESTMENT BANKERS
Karl M. Schmidt
Brian T. Tunney
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