KippsDeSanto & Co. advises Chemring Group PLC on the Sale of Chemring Military Products to Global Ordnance

KippsDeSanto & Co. advises Chemring Group PLC on the Sale of Chemring Military Products to Global Ordnance

KippsDeSanto & Co. is pleased to announce that it has advised on the sale of Chemring Military Products (“CMP” or the “Company”), a subsidiary of CHG Group, Inc., to Global Ordnance. The transaction expands Global Ordnance’s customer access, while helping our client, Chemring Group PLC (LSE:CHG), pursue its strategic initiatives of reshaping its defense and security portfolio.

Based in Perry, FL, CMP is one of the largest suppliers of non-standard ammunition and ordnance to the U.S. Government and allied militaries.  The Company has direct access to ammunition and weapon systems, including small, medium, and large caliber direct and indirect fire systems.  The Company also supplies law enforcement personnel with high-quality and competitively priced ammunition, pyrotechnics, and weapons systems.  CMP partners with domestic and international customers and utilizes its core competencies in supply chain and program management, quality assurance, and logistics to deliver best-value solutions.

We believe this transaction demonstrates several key trends in the aerospace and defense M&A environment:

  • Continued use of divestitures for portfolio shaping in line with shifting strategic plans
  • Intrinsic value of entrenched customer relationships throughout the defense industrial base
  • Driving value through the ability to realize operational and production synergies

About KippsDeSanto & Co. KippsDeSanto & Co. is the largest independent investment banking firm exclusively focused on serving leading, growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

PRESS RELEASE

Global Ordnance Acquires Chemring Military Products Inc.

SARASOTA, Fla., April 5, 2019 /PRNewswire/ — Global Ordnance LLC (“Global Ordnance”) announced it has completed the acquisition (“Acquisition”) of Chemring Military Products Inc. (“CMP”), a subsidiary company of Chemring Group PLC.

Global Ordnance is a veteran-owned small business that responds to the needs arising from critical missions of the US Government and its allies around the world. Since its inception in 2013, Global Ordnance has earned a reputation as a trusted and reliable partner of its customers, to include the US Special Operations Command and the US Army.

CMP procures and delivers worldwide US-standard and non-standard ammunition and weapons systems.  In FY2018, CMP generated revenues exceeding $111M with an operating profit of $10.5M.

Both Global Ordnance and CMP have been long-time suppliers of non-standard ammunition (NSA) and non-standard weapons (NSW) to US and foreign government entities. Today’s acquisition of CMP by Global Ordnance marks the synergy of two well-established organizations with complementary strengths and expertise. By absorbing the staff and contracts of CMP into its organization, Global Ordnance aims to improve its already stellar reputation as a reliable and dependable US Government business partner and a leading supplier of NSA and NSW. On a larger scale as a result of this purchase, the focus for Global Ordnance going forward remains on providing unmatched service and products to its current customers.

While today’s Acquisition magnifies the depth and breadth of an already strong NSA/NSW team and places Global Ordnance atop the NSA/NSW partner spectrum, it also allows Global Ordnance to broaden the extent of activities in the commercial space which the company entered in earnest within the last two years. Since then, Global Ordnance has become an exclusive US distributor of already established brands, such as Grand Power of Slovakia and Australian Outback Ammunition of Australia. The company plans to continue growing its presence and strengthening its competitive impact in the commercial US market.

For more information about defense sales, visit www.global-ordnance.com or inquire at info@global-ordnance.com.  For additional details regarding commercial sales, visit www.globalordnance.com or inquire at info@globalordnance.com.

Contact – Marc Morales, 941-896-2251, info@global-ordnance.com

 

KippsDeSanto’s DealView — Top 10 M&A Deals of the Quarter

KippsDeSanto & Co., a leading aerospace / defense and government technology solutions investment bank, would like to share its thoughts on the “Top 10 M&A Deals of the Quarter” for the period ended March 31, 2019.  The following table is our take on the most notable announced M&A transactions — not only based on size, but also on strategic importance and / or impact.

 The aerospace and defense deal of the quarter is the acquisition of Endeavor Robotic Holdings, Inc. (“Endeavor”) by FLIR systems, Inc. (“FLIR”) from private equity firm, Arlington Capital Partners, for an estimated $385 million in cash.  Based outside Boston and formerly known as iRobot Defense & Security, Endeavor has shipped more than 7,000 unmanned ground vehicles (“UGV”) to customers in over 55 countries.  Endeavor provides battle-tested, tactical UGVs for the global military, public safety, and critical infrastructure markets.  This transaction, along with FLIR’s recent acquisitions of Aeryon Labs and PROX Dynamics, has significantly expanded FLIR’s unmanned systems capabilities and aligns with its evolution from sensors to intelligent sensing and ultimately integrated solutions.  Upon closing of the acquisition, Endeavor will be part of the FLIR Government and Defense Business Unit’s Unmanned Systems and Integrated Solutions division.  The transaction is expected to be $0.03 dilutive to FLIR’s 2019 adjusted earnings per share, due to borrowing costs associated with funding the transaction, but accretive thereafter.

The government technology solutions deal of the quarter is ManTech, Inc.’s (NASDAQ:MANT) acquisition of Kforce Government Solutions, Inc. (“KGS”), a subsidiary of Kforce, Inc. (NASDAQ:KFRC).  KGS provides high-end technology and business consulting solutions aimed at improving mission effectiveness and operational efficiencies for Federal customers, primarily at the Department of Veteran Affairs (“VA”) and Department of Defense (“DoD”).  The $115 million all cash transaction was announced on March 1st.  This acquisition significantly expands ManTech’s footprint at the VA and gives ManTech access to KGS’ prime position on the VA’s 10-year, $22.3 billion, Transformation Twenty-One Total Technology Next Generation (“T4NG”) Indefinite Delivery Indefinite Quantity (“IDIQ”) program.  KGS adds ~500 skilled employees and ~$100 million of annual revenue to ManTech.  This transaction is yet another example of strategic buyers paying premium valuations for well positioned businesses that hold key contract vehicles, like T4NG.  KippsDeSanto & Co. acted as the exclusive financial advisor to KGS on this transaction.

Click to access KippsDeSanto’s 2019 Aerospace/Defense & Government Services M&A Survey

About KippsDeSanto & Co KippsDeSanto & Co. is the largest independent investment banking firm exclusively focused on serving leading, growth-oriented Aerospace/Defense, Government Services and Technology companies.  We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.