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Hi-Shear Technology's shareholders approve acquisition by Chemring Group

Posted on: Fri, 20 Nov 2009 13:18:00 EST

Symbols: HSR, CMGMF

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Nov 20, 2009 (Datamonitor Financial Deals Tracker via COMTEX) --
HSR | Quote | Chart | News | PowerRating -- Update on November 19, 2009:

The stockholders of of Hi-Shear Technology Corporation have approved the company's proposed acquisition by Chemring Group PLC. Chemring is a UK-based manufacturer of decoy countermeasures and energetic materials for the defense, security, and safety markets, while Hi-Shear is a US-based designer and manufacturer of pyrotechnic, mechanical, and electronic products for the aerospace and defense markets.

The transaction is expected to close on or about November 24, 2009.

Announcement (September 16, 2009):

Chemring has entered into a conditional agreement to acquire the entire issued stock capital of Hi-Shear Technology for a cash consideration of $19.18 per share aggregating to $132 million.

Chemring will fund the consideration utilizing a new committed facility with Lloyds Banking Group.

Cardew Group is acting as public relations advisor to Chemring Group. Lazard Group is acting as financial advisor and Gibson Dunn & Crutcher LLP is acting as legal advisor Board of Directors of Hi-Shear Technology on the transaction.

The transaction is anticipated to be completed in the fourth quarter of 2009.

Deal Value (US$ Million) 132
Deal Type                Acquisition
Sub-Category             100% Acquisition
Deal Status              Announced: 2009-09-16

Deal Participants

Target (Company)   Hi-Shear Technology Corporation
Acquirer (Company) Chemring Group PLC

Deal Rationale

The acquisition of Hi-Shear considerably extends Chemring's capabilities as an advanced engineering business, and creates a strong platform for growth in the space and missile defense markets. Hi-Shear's unique capabilities in pyrotechnics, mechanical, and electronic engineering combined with Chemring's existing strengths in energetic materials and sub-systems will create one of the leading companies in these markets.

For full details on Hi-Shear Technology Corp (HSR) HSR. Hi-Shear Technology Corp (HSR) has Short Term PowerRatings at TradingMarkets. Details on Hi-Shear Technology Corp (HSR) Short Term PowerRatings is available at This Link.

For full details on (CMGMF) CMGMF. (CMGMF) has Short Term PowerRatings at TradingMarkets. Details on (CMGMF) Short Term PowerRatings is available at This Link.

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