Group PLC buys Hi-Shear

Chemring Group PLC said Wednesday it is buying aerospace and defense company Hi-Shear Technology Corp. for $132 million.

The deal is being funded from a new committed facility with Lloyds Banking Group PLC. David Price, chief executive of Chemring, stated that the deal creates a strong platform for growth in the company’s space and missile-defense markets.

The acquisition is expected to enhance Chemring’s earnings in the first full financial year post-completion.

At close of its last fiscal year, Hi-Shear (AMEX:HSR) reported revenue of $25.9 million.

Based in the U.K., Chemring makes and sells defense materials in the U.K., U.S., Europe and Australia. The company employs 3,000 worldwide. Hi-Shear is based in Torrance and employs 500. It’s product line aids space exploration, development of satellites, missile systems and first-line fighter aircraft.

Pending U.S. and shareholder approval, the deal is expected to close in the fourth quarter.

Source: bizjournals

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