Chemring to acquire MEI

Chemring is expanding in the $1.9bn US market for pyrotechnics and munitions components with the acquisition of Florida-based Martin Electronics.

Chemring

has conditionally agreed to acquire Florida-based

Martin Electronics

(MEI), a specialist manufacturer of ammunition, fuses, signalling and other pyrotechnically activated devices for use in the defence sector, for $70m.

Founded in 1954, MEI manufactures close combat products including training grenade fuses, pyrotechnics and specialist 40mm ammunition. Its customers include the US military, prime contractors and overseas governments. In the year ended 31 December 2007, MEI reported a turnover of $25.3m.

MEI will position Hants-based Chemring favourably within key niches in the US munitions components market, increasing the group’s capabilities by providing a platform from which to develop specialist prime contract opportunities in North America.

The sale and purchase agreement, which is likely to close by the end of July, is conditional upon the expiry of the thirty-day waiting period required by the Hart-Scott-Rodino and Exon-Florio rules.