COSTA MESA, Calif., July 11, 2008 (PRIME NEWSWIRE) -- Scot Inc., a manufacturer of cartridge-actuated and propellant-actuated devices for use in the commercial aerospace and defense markets, announced that it has signed a definitive agreement to be acquired by Chemring Group PLC (LSE:CHG). The announced purchase price was $40 million.
RSM EquiCo Capital Markets LLC initiated the transaction, led the negotiations and acted as the exclusive financial advisor to Scot and its stakeholders. Reed Smith LLP acted as the legal advisor to Scot. Seyfarth Shaw LLP acted as the legal advisor to Chemring.
"The acquisition of Scot significantly enhances our engineering design skills within the CAD/PAD and pyrotechnic market," said David Price, Chemring's chief executive. "The complementary products and the combined capabilities of Scot with our existing subsidiary, Technical Ordinance Inc., will create a world class company that will quickly become the leading supplier of pyrotechnics to the U.S. aerospace market."
"This is a significant transaction for RSM EquiCo as it continues to demonstrate our proficiency in executing cross-border M&A transactions. It further showcases our expertise in the aerospace and defense industry," said Hector J. Cuellar, the firm's president.
A team of RSM EquiCo professionals contributed to the successful close of this transaction. The U.S.-based team included Cuellar, Paul Weisbrich, senior managing director; Sean Walker, director; and Trevor Bohn, vice president. The U.K team included Paul Teuten, managing director and Miki Dan, vice president.
About RSM EquiCo Capital Markets
RSM EquiCo Capital Markets LLC (www.rsmequico.com) is a global provider of investment banking services to private and public companies with annual revenues of up to $1 billion. The firm's services include mergers, acquisitions, divestitures, recapitalizations, capital raising, fairness opinions and restructurings. RSM EquiCo Capital Markets, which offers in-depth expertise in 12 distinct industry sectors, brings together companies, capital and creativity on a national and international scale to help clients achieve their personal and strategic objectives.
RSM EquiCo Capital Markets is affiliated with RSM McGladrey Inc., a professional services firm providing accounting, tax and business consulting. Both firms are units of H&R Block Inc. (NYSE:HRB), the world's preeminent tax services provider.
RSM EquiCo Capital Markets' international headquarters are located in Costa Mesa, Calif. It also has offices in Chicago, Boston, New York, Dallas and London. The firm is a member of FINRA and SIPC.
About Scot Inc.
Scot (www.scotinc.com) is a leading supplier of aircrew egress system components; stores attach/release devices and military life support test equipment. Scot's extensive expertise in linear actuation, pneumatic or pyrotechnic, has evolved into launch vehicle systems such as stage separation, booster motor attach/thrusters, and fuel control valve systems. Scot has produced products for various commercial and military aircraft platforms including the F-15, C-17, F/A-18, and B767. In addition to its core business of pyrotechnic/pneumatic devices, the company has a proven reputation for highly reliable parachute and oxygen testers and bomb rack ejector systems. Scot disclosed revenues of $23.8 million and a pre-tax profit of $2.7 million for the fiscal year ended December 31, 2007. Scot is based in Downers Grove, Ill.
About Chemring Group PLC
Chemring Group (www.chemring.co.uk), based in Fareham, U.K., operates in two primary divisions, Countermeasures and Energetics. The Countermeasures division is the world's leading provider of expendable decoy countermeasures for protecting air, sea and land platforms against guided missile threats. The Energetic division manufactures safety systems, initiators, pyrotechnics, disrupters, medium and large caliber ammunition, pyromechanisms and propulsion systems. Chemring is approximately a 800 million pounds market cap company with 255 million pounds in revenue.