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Chemring buys pyrotechnics specialist
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Chemring buys pyrotechnics specialist
Tue, 27 May 2008, 08:06:00
Military decoy producer <b>Chemring</b> has acquired a US-based manufacturer of cartridge-actuated and propellant-actuated devices.<br /><br />Chemring is paying $40m (£20.2m) in cash for Scot, a manufacturer of devices used in aircraft emergency systems and air-crew escape systems. Scot also designs and manufactures actuators, valves and sequencers, separation nuts and bolts, and aircraft weapon ejector systems.<br /><br />In 2007 Scot&#8217;s achieved a pre-tax profit of $4.7m (£2.37m) on revenue of $23.8m (£12m). The profit figure is before non-recurring private equity interest costs of $2.7m (£1.36m).<br /><br />At the end of 2007 Scot had gross assets of $9.7m (£4.9m).<br /><br />The acquisition is expected to be earnings enhancing in the first full year of operation after completion of the acquisition.<br /><br />Chemring said the addition of Scot will give it a US centre-of-excellence for the development and production of pyrotechnic devices and sub-systems used in aircraft, missile and space platforms. <br /><br />&#8220;The acquisition of Scot significantly enhances our engineering and design skills within the CAD/PAD (cartridge-actuated and propellant-actuated devices ) and pyrotechnic market," said David Price, chief executive of Chemring.<br /><br />"The complementary products and the combined capabilities of Scot and our existing subsidiary, Technical Ordnance, Inc., will create a world class company that will quickly become the leading supplier of pyrotechnics to the US aerospace market,&#8221; Price added.<br /><br />The company is buying Scot from private equity outfit SMS Industries.
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