StockMarketWire.com - Chemring said it had completed the sale of its military trading business Chemring Military Products to Global Ordnance for $4m in cash.

The sale comes in the wake of a strategic review in November last year, when the company said it would exit its commoditised energetics businesses, located in Derby and Florida, and focus on the niche specialist energetic devices and materials businesses in Chicago, Scotland and Norway, where the group had 'strong' intellectual property and high barriers to entry.

Chemring Military Products, located in Perry, Florida, procured and delivered worldwide US-standard and non-standard ammunition, and weapons systems. 

In the year ended 31 October 2018, CMP generated revenues of $111m, an operating profit of $11m, had gross assets of $19m and net assets of $3m. 

Chemring said $2.5m of $4m was paid on completion with additional payments of $1m and $0.5m due on the first and second anniversaries of the completion, respectively.

The proceeds after costs would be used by the Group for general corporate purposes.

At 10:01am: [LON:CHG] Chemring Group PLC share price was +4.6p at 147.8p



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