Chemring deal boosts
US business

A Hampshire-based defence systems developer has enhanced its position in the US pyrotechnic market through the acquisition of an Illinois-based company.


A Hampshire-based defence systems developer has enhanced its position in the US pyrotechnic market through the acquisition of an Illinois-based company.

A Hampshire-based defence systems developer has enhanced its position in the US pyrotechnic market through the acquisition of an Illinois-based company.

Chemring Group Plc, a manufacturer of decoy countermeasures and energetic materials, has bought Scot, which makes cartridge and propellant-actuated devices for aircraft emergency systems.

The group bought Scot from SMS Industries for $40 million (£20.2 million) in cash, which was funded by debt.

The deal provides Chemring with a US centre for the design, development, and manufacture of pyrotechnic devices and sub-systems used in aircraft and space platforms. Scot’s engineering operations also complement Chemring’s high-volume manufacturing and automation capabilities in North America.

Chemring sells its products to the military, security forces and commercial marine operators. It employs more than 2,500 people at 19 operations in the UK, US, France, Germany, Italy, Norway, Spain and Australia.

Scot also designs and manufactures actuators, valves and sequencers, separation nuts and bolts, and aircraft weapon ejector systems. In the year to January 2008, Scot reported $4.7 million (£2.37 million) pre-tax profit on a $23.8 million (£12 million) turnover.

Marc Barber

Raven Connelly

Marc was editor of GrowthBusiness from 2006 to 2010. He specialised in writing about entrepreneurs, private equity and venture capital, mid-market M&A, small caps and high-growth businesses.

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