Britain’s Chemring Group on Wednesday said it has agree to buy countermeasures assets from a United Kingdom-based subsidiary of Esterline Corp. [ESL] for $3.8 million plus a potential earnout provision worth up to $13.6 million.

Aircraft infrared countermeasures products offered by Esterline's Wallop subsidiary. Photo: Esterline
Aircraft infrared countermeasures products offered by Esterline’s Wallop subsidiary. Photo: Esterline

The deal is expected to close in early 2016 subject to U.K. regulatory approvals.

Chemring is buying patents, equipment, stock and selected contracts of Esterline’s Wallop Defence Systems subsidiary. The assets included in the deal include military aircraft infrared decoy flare countermeasures.

The sale by Esterline is part of the company’s year-old strategy to streamline operations and align the company to a strategic set of core capabilities. Earlier this year, Esterline sold its Pacific Aerospace and Electronics subsidiary to the private equity firm ShoreView Industries and its Eclipse Electronic Systems business to Britain’s BAE Systems.

The pending sale of Wallop will complete Esterline’s plan for divestitures.

Edwards Advisory Partners Limited is serving as Esterline’s financial adviser on the Wallop sale.