Chemring pays £80m for LA's Hi-Shear

16th Sep 2009 08:02

Military decoy expert Chemring is paying $132m (£80m) for Los Angeles-based Hi-Shear Technology, a maker of pyrotechnic products for the defence and aerospace industry.The UK firm said it has entered into a conditional agreement to buy the business for $19.18 in cash per share and expects the deal to complete in eth fourth quarter.'The acquisition of Hi-Shear considerably extends Chemring's capabilities as an advanced engineering business, and creates a strong platform for growth in the space and missile defence markets,' said Chemring boss David Price.'I am confident that its unique capabilities in pyrotechnics, mechanical and electronic engineering combined with our existing strengths in energetic materials and sub-systems will create a world leader in these markets.'Chemring said the new unit will help create a 'group-wide centre of excellence in advanced initiation technologies', critical elements of next generation missile systems such as the Patriot 'PAC-3' anti-ballistic missile.It also hopes Hi-Shear, already well established in the US space and satellite separation market, can do the same with European satellite makers.