LONDON, Nov 5 (Reuters) - British military equipment maker Chemring Group Plc (CHG.L) said on Monday it was buying bomb-disposal equipment maker Richmond Electronics and Engineering Ltd for 11 million pounds ($23 million).
Privately owmed Richmond’s products include robots used to disarm or detonate bombs and blast-protection clothing for bomb-disposal officers.
“The growing global IED (improvised explosive devices) threat and creation of new military and homeland security bomb disposal teams will further extend the opportunity for our ... products over the next few years,” Chief Executive David Price said in a statement.
Richmond made an unaudited profit of 1.5 million pounds in the year to end-September, on turnover of 5.8 million pounds.
Numis Securities raised its rating on Chemring stock to “add” from “buy”, saying in a note Richmond was “another enhancing acquisition”.
At 1000 GMT, Chemring shares, which have risen tenfold in the past five years, were up 1.1 percent at 2,216 pence, valuing the company at 721 million pounds.