British company purchases American IED detection firm for $90M
Last week the British defense firm Chemring finalized a deal to purchase Detection Systems, a subsidiary of General Dynamics, for $90 million; North Carolina based Detection Systems specializes in improvised explosive devices (IED) sensor systems; Detection Systems currently supplies the U.S. military with vehicle mounted IED detectors; the acquisition helps to enhance Chemring’s existing IED detection capabilities and provides growth opportunities for its chemical and biological detection programs; the purchase will not be finalized until the U.S. government reviews the proposal
Last week the British defense firm Chemring finalized a deal to purchase Detection Systems, a subsidiary of General Dynamics, for $90 million.
North Carolina based Detection Systems specializes in chemical and biological threat detection. In particular the company focuses on improvised explosive devices (IED) sensor systems.
In 2010, Detection Systems won a contract with the U.S. military for full rate production of its JBDPS. The contract was valued at $300 million and contained the potential for further upgrade work.
The company also provides a stand-off IED and explosive detector as well as a hand held chemical detection device.
Last year Detection Systems generated revenues of $61.5 million and is expected to help boost Chemring’s earnings by next year.
The acquisition helps to enhance Chemring’s existing IED detection capabilities and provides growth opportunities for its chemical and biological detection programs. Chemring already has existing contracts with the U.S. military to supply vehicle-mounted biological and chemical detectors.
In a statement, Dr. David Price, the CEO of Chemring, said, “This acquisition substantially enhances our counter-IED business activities with leading-edge 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.”
The purchase will not be finalized until the U.S. government reviews the proposal. The government is expected to reach a decision within sixty days.
