REG - Chemring Group PLC - Acquisition of Landguard Systems

ChemringAnnouncement

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RNS Number : 8543O  Chemring Group PLC  30 June 2025

FOR IMMEDIATE RELEASE
 
                30 JUNE 2025

 

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

 

ACQUISITION OF LANDGUARD SYSTEMS

Chemring is pleased to announce the conditional acquisition of Landguard Nexus
Limited ("Landguard") and its wholly owned subsidiaries Landguard Systems Inc
and Landguard Systems Limited (collectively the "Landguard Group") (the
"Acquisition"). The Acquisition creates further opportunities for Chemring to
enhance the growth of its Roke business.

Acquisition overview

Landguard, based in Fareham, Hampshire, designs, manufactures, and supports,
software defined radio ("SDR") systems and associated security products that
enable defence, government, and law enforcement customers to protect crucial
operational assets. These specialist systems include high performance tracking
products operating across satellite communications, cellular networks and
other radio frequency technologies, as well as SDR transceivers which provide
flexible and reprogrammable radio capabilities incorporating the latest
interoperability standards.

Landguard's operational agility, and unique technologies, enables it to
satisfy customer requirements across the complete product lifecycle of design,
manufacturing, and after-sales operational support. The acquisition brings
thirty specialist engineers to Roke in addition to a suite of market leading
products, unique intellectual property and a range of complementary customer
relationships. The current owner-managers of Landguard are expected to remain
with Chemring following completion of the Acquisition.

The consideration of up to £20m will be satisfied by a £14m cash payment on
completion, funded from Chemring's existing bank facilities, and cash earnouts
totalling up to £6m subject to certain performance targets. In the year ended
31 January 2025, Landguard's turnover was c.£7m. The acquisition is expected
to be marginally earnings enhancing in the year ending 31 October 2026.

Completion of the transaction is subject to approval under the UK National
Investment and Security Act.

Opportunity and rationale

The Acquisition creates further opportunities for Chemring to enhance and
accelerate growth of its Roke business whilst driving strong operational
synergies. The combination of Roke's Cyber and Electromagnetic Activities
("CEMA") pedigree and Landguard's modular, high-performance technologies
creates a unique UK Sovereign portfolio of Defence, National Security and Law
Enforcement products and capabilities that can be immediately shared with
Roke's existing Defence and National Security customers and also used to
enhance its significant (>£300 million) international sales pipeline.

Michael Ord, Chief Executive of Chemring, commented:

"The acquisition of Landguard further enhances Roke's significant operational
capabilities and is further evidence of Chemring delivering its strategy of
delivering growth through a combination of organic investment and bolt-on
acquisitions in high-priority defence and national security markets."

ENDS

 

For further information:

Rupert Pittman           Group Director of Corporate Affairs,
               01794 463401

                                      Chemring Group
PLC

 

James McFarlane        MHP
Group
                        07584 142665

Ollie Hoare
 
         07817 458804

 

 

Cautionary statement

 

This announcement may contain forward-looking statements that are based on
current expectations or beliefs, as well as assumptions about future events.
These forward-looking statements can be identified by the fact that they do
not relate only to historical or current facts. Forward-looking statements
often use words such as anticipate, target, expect, estimate, intend, plan,
goal, believe, will, may, should, would, could, is confident, or other words
of similar meaning. Undue reliance should not be placed on any such statements
because they speak only as at the date of this document and, by their very
nature, they are subject to known and unknown risks and uncertainties and can
be affected by other factors that could cause actual results, and Chemring's
plans and objectives, to differ materially from those expressed or implied in
the forward-looking statements. There are a number of factors which could
cause actual results to differ materially from those expressed or implied in
forward-looking statements. Among the factors that could cause actual results
to differ materially from those described in the forward-looking statements
are: increased competition, the loss of or damage to one or more key customer
relationships, changes to customer ordering patterns, delays in obtaining
customer approvals for engineering or price level changes, the failure of one
or more key suppliers, the outcome of business or industry restructuring, the
outcome of any litigation, changes in economic conditions, currency
fluctuations, changes in interest and tax rates, changes in raw material or
energy market prices, changes in laws, regulations or regulatory policies,
developments in legal or public policy doctrines, technological developments,
the failure to retain key management, or the key timing and success of future
acquisition opportunities or major investment projects. Chemring undertakes no
obligation to revise or update any forward-looking statement contained within
this announcement, regardless of whether those statements are affected as a
result of new information, future events or otherwise, save as required by law
and regulations.

 

Notes to editors

 

·   Chemring is a FTSE250 global business that specialises in the
manufacture of high technology products and the provision of services to the
defence, security and aerospace markets

·   Employing approximately 2,700 people worldwide, and with production
facilities in four countries, Chemring meets the needs of customers in more
than fifty countries

·   Chemring is organised under two strategic product segments: Sensors
& Information and Countermeasures & Energetics

·   Chemring has a diverse portfolio of products that deliver high
reliability solutions to protect people, platforms, missions and information
against constantly changing threats

·   Operating in niche markets and with strong investment in research and
development ("R&D"), Chemring has the agility to rapidly react to urgent
customer needs

 

www.chemring.com. (http://www.chemring.com.)

 

 

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