DLA Piper teams in Australia and Spain have acted for British defence equipment maker, Chemring Group, on the sale of its marine interests to Drew Marine for £32 (AUD$50) million.
Chemring makes ejector seats and pyrotechnic decoys for military aircraft, and said it no longer viewed its marine unit as core to its business.
Drew Marine, a supplier of marine water treatment, maintenance, welding and refrigeration, fuel treatment, will be a closer fit with Chemring Marine, which supplies marine distress signals to the commercial and leisure markets.
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.
"It was a complex arrangement given Chemring's presence in four countries and the way the company was structured in each jurisdiction,” said Burger.
“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,” he said.
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.