Carlyle gives up on Chemring

Greg Gille
@unquotenews
08 November 2012

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Carlyle has decided against bidding for British listed military supplier Chemring, following two deadline extensions.

The GP was granted a second extension on its deadline to make an offer for Chemring in October – Carlyle had until 5pm on 9 November 2012 to make a firm offer for the business. The buyout house was granted a first extension in early September.

This was the first time a private equity bidder was known to have been granted extra time under the recent Takeover Code's "put up or shut up" rules, designed to prevent speculative bids.

Chemring CEO David Price resigned from his position at the end of October, further fuelling concerns over Carlyle's ability to go through with the takeover.

Price was replaced by Mark Papworth, the former CEO of Wood Group's gas turbines services division.

LSE-listed Chemring supplies armies with tools for detecting and disposing of bombs. The firm is thought to have been hit by reduced defence spending in the US, UK and elsewhere. It posted a £730.7m turnover in 2011.