The Nexter Group in France says it has reached an agreement with the Chemring Group to purchase ammunition manufacturers in Belgium and Italy.
April 24, 2014 By Richard Tomkins (UPI)
VERSAILLES, France, April 24 -- The Nexter Group of France is strengthening its ammunition division with the acquisition of two ammunition manufacturers in Europe.
Agreements with the Chemring Group for the purchase of all shares of Mecar in Belgium and Simmel Difesa in Italy have been signed, but the deal still must obtain approval from Chemring shareholders and Italian regulators.
“Based on its solid past performance and on its strong balance sheet, Nexter has developed a growth strategy and intends, when opportunities arise, to actively participate in industry consolidation,” Nexter said. “The two acquisitions constitute a unique growth opportunity for Nexter Group, which will enrich its range of ammunition products in three domains -- land, air and sea ammunition -- and extend its commercial footprint on key export markets.”
Nexter said strengthening of its ammunition division will lead to accelerated development of new products and expansion of its customer base.
“I am very pleased with today’s news of this disposal, which is in line with our strategy of focusing on our core skills,” said Mark Papworth, chief executive of Chemring Group. “I am delighted that we have been able to sell these businesses to Nexter Group, who are well placed to maximize their full potential.”
The Chemring Group, a high technology company, is headquartered Britain.