A multijurisdictional DLA Piper team in Australia and Spain has acted for multinational manufacturing company, Chemring Group, on the sale of its marine interests to Drew Marine for £32 million.
The Chemring Marine Business is the world’s leading supplier of SOLAS, MED & USCG approved marine distress signals to the commercial and leisure marine markets, under the brand names Pains Wessex and Comet, operating in the UK, Germany, Spain and Australia.
Drew Marine is a recognised global leader in the supply of marine water treatment, maintenance, welding and refrigeration, fuel treatment and fire, safety and rescue products and services to ship owners, ship managers and shipyards. Drew Marine was acquired in 2009 by J.F. Lehman & Company, a leading middle-market private equity firm focused on the maritime, aerospace and defence sectors.
DLA Piper assisted Chemring in Spain and Australia with sale agreements and various other agreements required for the sale and future arrangements between Chemring and Drew Marine. The team was jointly led by Melbourne-based Corporate partner Mark Burger (assisted by solicitor Laura Loftus) and Madrid-based Corporate partner Joaquin Echanove (assisted by associate Luis Borrero).
Mark Burger said, “It has been a pleasure to work on a strategic multijurisdictional sale for a leading manufacturer, Chemring Group. It was a complex arrangement given Chemring’s presence in four countries and the way the company was structured in each jurisdiction. Two separate sale agreements were required to complete the transaction and in Australia, a number of other documents have been agreed to facilitate an ongoing relationship between Chemring Australia Pty Ltd and Drew Marine.”
Completion, which is conditional upon regulatory approvals and subject to a working capital adjustment, is expected by the end of July. The proceeds after costs will be used by the Group to reduce net debt, initiate a share buy-back, and to fund existing pension liabilities of around £2 million.
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