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Chemring takes over Allied Defense Group in £36m deal (From Andover Advertiser)
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Chemring takes over Allied Defense Group in £36m deal
10:24am Wednesday 20th January 2010
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- By Gareth Lewis » Business Editor
BULLET manufacturer The Allied Defense Group (ADG) is the latest foreign firm to succumb to the lure of acquisitive Hampshire defence firm Chemring.
The Virginia, USA, based manufacturer of medium and large calibre ammunition has agreed a £36m takeover deal with the Whiteley explosives specialist.
Soaring demand for military equipment in Afghanistan also helped Chemring post a huge rise in pre-tax profit, up 66 per cent to £95.8m in the year to November.
The deal for ADG is just the latest in an eye-catching string of audacious buy-up deals across the US that have transformed the company in the past two years.
Last September Chemring, the winner of the Daily Echo backed 2009 KPMG Company of the Year award bought US space technology group Hi- Shear Technology Corporation for £80m.
Earlier the firm had bought US mine detecting firm Niitek for £22m, another US ammunition maker Martin electronics for £35m and American space shuttle parts maker Scot for £20m.
The list continues with Norfolk based bomb diffusing experts Richmond Electronics & Engineering in an £11m deal and another bomb specialist in Poole’s BDL Systems for £9m.
Growth in its business combined with these acquisitions put a rocket under revenues, which spiralled upwards by 42 per cent to £503.9m for the year to the end of October.
The acquisition of ADG, which specialises in ammunition for armoured vehicles, brings Chemring a presence in the Middle East, a key step for a firm with a largely NATO focus.
David Price, chief executive of Chemring, said: “The acquisition of The Allied Defense Group will significantly enhance our business within the global ammunition and ammunitionrelated service markets. It provides a complementary range of products and manufacturing technologies, and increases the strength of our product engineering capabilities.
“The combined business will provide a strong platform for growth and create a world leader in these markets.”
Ken Scobie, Chemring group chairman, said: “It is very satisfactory to report another year of substantial growth in earnings, combined with excellent cash generation and a strong balance sheet. During 2009, three significant landmarks were reached – Group revenue exceeded £500 million; underlying profit before tax exceeded £100 million; and our market capitalisation increased to over £1 billion.”
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Your Say YourAndover
Derek of Dibden Purlieu, Hampshire says...
11:11am Wed 20 Jan 10
alabaster wrote:When jobs are being lost on a daily basis, I expect the workforce agree with that statement. It's good news for British industry.
"It is very satisfactory to report another year of substantial growth in earnings"
Isn't it great he is having such a good year?
colinpickford1, southampton says...
11:56am Wed 20 Jan 10
southy, redbridge says...
12:41pm Wed 20 Jan 10
so in the long run it be bad news for british industry
Spokesman for the Animals, Nursling says...
12:49pm Wed 20 Jan 10
Derek of Dibden Purlieu, Hampshire says...
2:06pm Wed 20 Jan 10
southy wrote:You deal with it in your usual negative and bigoted way, focus on imaginary 'what ifs' and generally upset yourself while the rest of us deal with the facts presented by the people in the ADG company who probably know what they're talking about.
you know what will happen, give a bit of time, and there be cut back, then they move the company abroad, just like every else.
so in the long run it be bad news for british industry
Brite Spark, Selsey Bob says...
2:32pm Wed 20 Jan 10
colinpickford1 wrote:I believe that their products are responsible for allowing our troops to defend themselves efficiently.
Not such good news for anyone who gets shot with their products.
southy, redbridge says...
2:40pm Wed 20 Jan 10
Spokesman for the Animals wrote:you only need to look at what has been happening in the last 30 years.
this guy southy can turn a good possitive news story into a bad one
the list is getting to be very long now, twinings is the latest one, that will be moving to poland and china, who is owned by associated british foods, with the lost of over 400 jobs. with more on top that because there will be a knock on effect, like the people who make there packaging and do the printing ect.
and derek you are to short sighted to see what is really happening out there, and its not bigoted or imaginary. just facts
Derek of Dibden Purlieu, Hampshire says...
3:31pm Wed 20 Jan 10
southy, redbridge says...
3:50pm Wed 20 Jan 10
Derek of Dibden Purlieu wrote:derek open your eye just a little, i know the light do hurt a bit, take a real hard look what has happen in the pass with other companys, more or less the same things have been said time after time, end results you get the cut backs, then the company moving abroad for cheap labour. at a later date.
Try reading the story again and concentrate on the facts given by the company spokesman and not dreamed up in your imaginary world. If you are going to spin a story based on your fears and beliefs you may as well save time reading the Echo and just sit in your chair imagining the end of the world. Learn to deal with facts and don't let your imagination control your life so much. Thousands of years ago there were probably dinosaurs roaming the area now occupied by Redbridge but you don't worry about them, or do you?
and this is short term history, and you cant even learn that,
its not a dream up or and imaginary world, its people like you who stick there heads in the sand and hope it might go away, but while your doing its creeping up on you and getting ready to bite your butt off. your turn could be just around the corner.
southy, redbridge says...
4:04pm Wed 20 Jan 10
this company making bullets ect will do the same in the end, all those companys that get to big, do the same the greed kicks in.
Derek of Dibden Purlieu, Hampshire says...
5:08pm Wed 20 Jan 10
I was being hopeful when I thought that you could stick to the story in hand but as usual you've disappointed me. No mention of history, moving abroad, cheap labour, Twining Tea etc etc but you can always be relied on to dream up something which isn't there to bring the story closer to your unpleasant view of things. What a sad life you must lead.
colinpickford1, southampton says...
5:17pm Wed 20 Jan 10
southy, redbridge says...
5:17pm Wed 20 Jan 10
Derek of Dibden Purlieu wrote:derek you need to see what happens in the pass to know its just history repeating it self over and over again, once one gets away with it, then another will do and before you relise it the flood gates are open.
**Chemring takes over Allied Defense Group in £36m deal**
I was being hopeful when I thought that you could stick to the story in hand but as usual you've disappointed me. No mention of history, moving abroad, cheap labour, Twining Tea etc etc but you can always be relied on to dream up something which isn't there to bring the story closer to your unpleasant view of things. What a sad life you must lead.
think like this, we are involved in to minor wars at the moment, what will happen when they are over and the shooting stops, and sales drop, it be then they will start looking at cut backs and that will not be enough they will look for cheaper labour, and will mean taking the company aboard, smaller companys seem not to do this because they are not so greedy.
colinpickford1, southampton says...
5:21pm Wed 20 Jan 10
southy, redbridge says...
5:28pm Wed 20 Jan 10
colinpickford1 wrote:dont worry about it, its only a blog site, its the message that counts.
maybe my spelling aint so bad
i was wondering if that is a colin pickford that i use to know way back 40 plus years ago.
Brite Spark, Selsey Bob says...
5:33pm Wed 20 Jan 10
southy wrote:Did the Colin Pickford of over 40 years ago know you as Southy Southy? And did you know him as Colin or Picky?
colinpickford1 wrote:dont worry about it, its only a blog site, its the message that counts.
maybe my spelling aint so bad
i was wondering if that is a colin pickford that i use to know way back 40 plus years ago.
southy, redbridge says...
5:38pm Wed 20 Jan 10
Brite Spark wrote:normally just col. he probley would know my nick name
southy wrote:Did the Colin Pickford of over 40 years ago know you as Southy Southy? And did you know him as Colin or Picky?
colinpickford1 wrote:dont worry about it, its only a blog site, its the message that counts.
maybe my spelling aint so bad
i was wondering if that is a colin pickford that i use to know way back 40 plus years ago.
colinpickford1, southampton says...
5:54pm Wed 20 Jan 10
Redback, Southampton says...
5:54pm Wed 20 Jan 10
colinpickford1, southampton says...
5:59pm Wed 20 Jan 10
southy, redbridge says...
6:11pm Wed 20 Jan 10
colinpickford1 wrote:lol you sound like him! just!
Now I'm confused (not hard to do). Am I me???? Well I guess I could be. I fit the age range.........JUST.
do the name derek k, kevin k steve k pete w eliz f janet f eddy w mean any thing
colinpickford1, southampton says...
6:18pm Wed 20 Jan 10
southy, redbridge says...
6:21pm Wed 20 Jan 10
hi ya col long time no see
colinpickford1, southampton says...
6:27pm Wed 20 Jan 10
.but im getting close.....er
southy, redbridge says...
6:47pm Wed 20 Jan 10
i pick up what you owe me tomorrow lol.
colinpickford1, southampton says...
6:54pm Wed 20 Jan 10
....Not THAT PW?
Please note that colin has now left the country and is in the safe keeping of the FBI.......Hi PW........Hows tricks?
southy, redbridge says...
6:55pm Wed 20 Jan 10
colinpickford1, southampton says...
7:08pm Wed 20 Jan 10
southy, redbridge says...
7:24pm Wed 20 Jan 10
hey drop by when your close to the area. same place where that old land mark use to be (one of my old boats)
forest hump, hythe says...
8:11pm Wed 20 Jan 10
Derek of Dibden Purlieu wrote:It's good that no one got fired! Cause for celebration: who's round is it
alabaster wrote: "It is very satisfactory to report another year of substantial growth in earnings" Isn't it great he is having such a good year?When jobs are being lost on a daily basis, I expect the workforce agree with that statement. It's good news for British industry.
stay local, southampton says...
7:09am Thu 21 Jan 10
southy wrote:But Southy, think of the workers. Surely you must offer solidarity with the workers of Poland, how can you as a socialist wish to see these other people downtrodden. I also wonder how you are applauding the continued manufacture, production and use of armaments and munitions, surely you would be looking to have "swords made into ploughshares" or are you simply supporting the capitalist oppression of weaker communities (George Bush's war in Iraq, to get his hands on the oil). I knew also supporting the selling of arms and munitions to the various groups around the world. The Nigerian ship pirates, the Iraqi insurgents, the Taliban in Afghanistan.
i all ready pointed out a latest example, twinings got bought out by associated british foods how long ago did they buy out twinings a company that started in london 300 years ago, a while back now. this company making bullets ect will do the same in the end, all those companys that get to big, do the same the greed kicks in.
I had the impression that most of the left-wing groups with whom you seem to associate, would want nothing to do with the production of items used in warfare.
southy, redbridge says...
12:59pm Thu 21 Jan 10
nobody likes war fare, apart from right wing politicians and very high ranking army officers, well at lest i hope most dont like war fare, in a perfect world you would not need arms for war fare, but the world is not perfect theres to much greed about
Derek of Dibden Purlieu, Hampshire says...
2:26pm Thu 21 Jan 10
southy wrote:I've met Eastern European contractors on the refinery at Fawley who write and speak perfect English. When filling in an application form for a job, the first impression counts and when one form written out legibly and correctly is laid alongside a badly spelled and grammatically poor one, which one is going to be thrown in the bin? The days of coasting along with no education knowing that menial jobs plus benefits will be your life are over. The EU is providing workers to do all of those jobs now.
colinpickford1 wrote:dont worry about it, its only a blog site, its the message that counts.
maybe my spelling aint so bad
i was wondering if that is a colin pickford that i use to know way back 40 plus years ago.
Chemring takesover ADG in £36m deal
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alabaster, Southampton says...
10:44am Wed 20 Jan 10
Isn't it great he is having such a good year?