Hampshire-based Chemring Group has agreed to acquire the Detection Systems operations and certain related assets of General Dynamics Armament and Technical Products, for a cash consideration of $90 million (£55.2 million).

Hampshire-based Chemring Group has agreed to acquire the Detection Systems operations and certain related assets of General Dynamics Armament and Technical Products, for a cash consideration of $90 million (£55.2 million).

Detection systems, a business based in North Carolina in the US, is a subsidiary of General Dynamics Corporation and provides chemical and biological threat detection services.

The acquisition will be used to enhance Chemring’s existing ‘improvised explosive device’ (IED) detection capabilities, according to the company. Chemring provides products such as pyrotechnics, radios and emergency beacons to the military market.

Under the terms of the deal, part of the $90 million consideration is being funded through the proceeds of a new placing of 17,405,183 Chemring shares. The company is to raise $183.5 million, before expenses, from the placing.

David Price, chief executive of Chemring, comments: ‘This acquisition substantially enhances our counter-IED business activities with leading US technology for biological, chemical and stand-off explosive detection.

‘It will provide a complementary capability to our existing subsidiaries, NIITEK and Chemring EOD, and help us expand our growing global market.’

Detection Systems is the incumbent supplier for two US military vehicle-mounted detection programs: the Joint Biological Point Detection System and the Joint Service Lightweight Standoff Chemical Agent Detector.

The remaining funds raised from the new placing, $93.3 million, will be used to ‘take advantage of future opportunities and pay transaction costs’, the company says in a statement.

The purchase by Chemring is its first since September when it acquired ammunition businesses Mecar SPRL and Mecar USA in a deal worth $65.3 million.