LONDON (AFX) - Chemring Group PLC said it has acquired BDL Systems Ltd for
9 mln stg in cash.
The defence group also announced today that its US countermeasures businesses, Alloy Surfaces Company Inc, based in Philadelphia, and Kilgore Flares Company LLC, based in Tennessee, have recently secured 80 mln usd of new orders.
The order book has now reached a record level of over 225 mln stg, the group said.
Alloy Surfaces has received a 57 mln usd order from the US Department of Defence for its M211 special material decoys. Alloy Surfaces has recently completed a plant expansion to provide the additional capacity needed to satisfy the significant increase in orders for its decoys from the DoD, and a third manufacturing facility is expected to become operational towards the end of 2006.
In addition, Kilgore has secured 23 mln usd of contract options with the DoD for US Air Force M206 and MJU-7A/B infra-red countermeasures.
Chemring said the acquisition of BDL is expected to enhance its earnings in the first full financial year post-completion.
BDL, based in Poole, Dorset, manufactures radio frequency initiators and hard-wired exploders used for the remote detonation of demolition charges, primarily for bomb disposal. It also makes electronic countermeasure equipment and under-vehicle surveillance systems, and supplies third party bomb-disposal equipment.
In the year ended March 2006, BDL reported an audited profit before tax after non-recurring costs of 0.2 mln stg, of 0.97 mln on turnover of 4.7 mln stg.
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