KippsDeSanto & Co. Advises Chemring Group PLC on the Sale of Chemring Ordnance, Inc. to Nammo Defence Systems Inc.

KippsDeSanto & Co. Advises Chemring Group PLC on the Sale of Chemring Ordnance, Inc. to Nammo Defence Systems Inc.

KippsDeSanto & Co. is pleased to announce that it has advised on the sale of Chemring Ordnance, Inc. (“COR” or the “Company”), a subsidiary of CHG Group, Inc., to Nammo Defence Systems Inc.  The transaction expands Nammo’s customer access, while helping our client, Chemring Group PLC (LSE:CHG), pursue its strategic portfolio shaping initiatives.

Based in Perry, FL, COR manufactures a range of ordnance and pyrotechnic products primarily for the U.S. Department of Defense, as well as foreign defense agencies.  The Company’s flagship product is utilized for counter-Improvised Explosive Device (“IED”) requirements, allowing its operators to quickly and safely deploy a system to neutralize potential minefields and similar threats.  COR also produces a variety of ammunition products utilized in land and sea missions, along with fuzing for various grenade systems.  In addition to its suite of products, the Company offers ammunition design, testing, and load, assemble, and pack (“LAP”) services.  With its extensive product line and intimate customer relationships, the Company is favorably poised to accelerate its overall growth and development.  The transaction was originally announced on November 21, 2019; it closed on May 6, 2020, subsequent to regulatory requirements.

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 an investment banking firm focused on serving 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

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release – May 07, 2020

Completion of disposal

On 21 November 2019 Chemring announced that it had entered into a conditional agreement to sell its US subsidiary Chemring Ordnance, Inc. to Nammo Defense Systems Inc. for a cash consideration of $17 million. The sale was subject to both regulatory approval by the US authorities and a working capital adjustment on completion.

Chemring is pleased to announce today that all regulatory approvals have now been received and the sale process has now completed.

The final working capital adjustment will be agreed in the next 60 days in accordance with the sale and purchase agreement, but at this stage, the net proceeds are expected to be approximately $15 million. These proceeds will be used by the Group for general corporate purposes.