Bain Capital, one of the world’s largest private equity firms, has reportedly launched a takeover bid for defence group Chemring.
Sky News’ Mark Kleinman first reported that Bain has made at least one proposal to acquire the FTSE 250 group, which is used by Elon Musk’s SpaceX
Shares in Chemring jumped as much as 13 per cent to 400p on Monday as news of the offer broke.
According to Sky, one source said an initial offer of 390p-a-share had been proposed, a substantial premium compared to the 356p the stock traded at before the bid was publicised.
The source also added that Bain was preparing a second offer, though it was unclear whether it had been submitted.
Defence sector expecting a boom
Chemring, which has a workforce of roughly 2,700 people, provides products and services to the aerospace, defence, and security markets. It also provides services for NASA and Elon Musk’s SpaceX.
The defence sector is expected to boom due to increased spending brought on by President Donald Trump’s return to the White House.
After Trump demanded NATO pull its weight in defence funds, and amid increased hostility from the Kremlin across Europe, there remains an expectation for defence funds to increase.
Despite reporting a record annual order book of £1.04bn for the year ending in October, Chemring’s shares have struggled over the past year.
Its shares sank 13 per cent in December after it posted its results, as problems at a US plant overshadowed growth forecasts.
The takeover bid comes amid uncertain waters for the London Stock Exchange, which has suffered continuous snubs and overseas takeovers in the last year.
In December 2024, the ‘Czech Sphinx’ billionaire Daniel Křetínský had his takeover of the Royal Mail approved by the UK government, in a deal worth £3.6bn.
Elsewhere, challenger bank Monument is said to be eyeing flotation in the US, in another hit to the London market’s attractiveness.