Chemring jettisons marine business

6th Jun 2012 07:16

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."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