Britain’s Chemring Group is expected to close its acquisition of The Allied Defense Group [ADG] today after ADG’s stockholders yesterday voted to authorize the sale of their company.
Chemring in January announced that it had agreed to acquire ADG for $59 million to expand its ammunition products and related services.
Under the asset purchase, Chemring will be acquiring ADG’s Belgium-based Mecar SA, a provider of medium and large caliber ammunition, particularly for light armored vehicles, and Texas-based Mecar USA, which provides the United States government and prime contractors with load, assemble, pack and procurement services for ammunition.
Chemring already has a munitions line the provides small caliber ammunition, naval ammunition and grenades.
ADG has a customer base in the Middle East for its munitions and Chemring has a focus on NATO customers.
Separately, last month Chemring agreed to acquire electronic warfare sensors and communications provider Roke Manor Research Ltd, from Germany’s Siemens [SI] for $84.4 million. Roke, which is based in the United Kingdom, develops advanced sensors, signal processing, communications and network solutions for the countermeasures, counter-improvised explosive device, counter-terrorism and industrial markets.
Chemring said that the Roke purchase will also give it a role in the homeland security market.