Military equipment maker Chemring has offloaded its marine interests to Drew Marine.
Private equity-backed firm Drew Marine is paying £32m in cash for Chemring Marine, a supplier of marine pyrotechnic distress signals to the commercial and leisure marine markets. In the year ended October 31st 2011, Drew Marine generated revenues of £21m, an operating profit of £6m, and had gross assets of £17m.
Chemring said the company was no longer a core part of its wider international defence strategy.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"We have developed our maritime business into the clear world leader but its future in the commercial and leisure sectors is no longer aligned with the growth strategy for the group," explained Dr David Price, Chief Executive of Chemring.
"Chemring believes that Chemring Marine will benefit from new owners who will provide the investment needed to expand its marine safety business and to develop its global maritime safety network," Dr Price added.
JH
-
Review: Hotel Barrière Le Majestic Cannes – the grande dame of CannesMoneyWeek Travel The stars may have arrived for the Cannes Film Festival, but Hotel Barrière Le Majestic Cannes is the true star of the show
-
The next phase of the AI boomThe technology is about to become far more widespread, says Dan McEvoy. Here’s how to profit
