Chemring CEO resigns as Carlyle prepares bid

Greg Gille
@unquotenews
23 October 2012

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David Price, the CEO of British military supplier Chemring, has resigned as Carlyle is still considering a potential takeover of the business.

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

The move is likely to fuel concerns over Carlyle's potential bid for the business. The GP was granted a second extension on its deadline to make an offer for Chemring earlier this month.

Carlyle now has until 5pm on 9 November 2012 to make a firm offer for the business. The GP 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.

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.