Chemring Group completes takeover bid of detection systems operation

The U.K.- based Chemring Group recently completed an $87.7 million takeover bid of the detection systems operations and related assets from General Dynamics Armament and Technical Products, a subsidiary of General Dynamics Corporation.

The business will now operate as Chemring Detection Systems, Inc., and continue to be based out of Charlotte, North Carolina. Detection Systems operates in the field of chemical and biological weapons threat detection, according to

"This acquisition substantially enhances our counter-IED business activities with leading-edge US technology for biological, chemical and stand-off explosive detection,” David Price, the CEO of Chemring, said, reports. “It will provide a complementary capability to our existing subsidiaries, NIITEK and Chemring EOD, and help us expand our growing global market."

The Chemring Group intends to place new ordinary shares in Chemring, and says the proceeds will, at least in part, fund the acquisition.

Detection Systems currently supplies the Joint Biological Point Detection System and the Joint Service Lightweight Standoff Chemical Agent Detector to the U.S. military. Both are vehicle mounted detection systems.

In 2010, Detection Systems reported an unaudited before tax profit of $8.3 million and a turnover of $61.5 million. As of 2010, the gross assets of Detection Systems were valued at $23 million.