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Bain Capital, one of the world’s leading private equity firms, has reportedly initiated a takeover bid for defence group Chemring.
The news was first reported by Sky News’ Mark Kleinman, who stated that Bain has submitted at least one proposal to acquire the FTSE 250 group, which is utilised by Elon Musk’s SpaceX, as reported by City AM.
Shares in Chemring surged as much as 13 per cent to 400p on Monday following the announcement of the offer.
According to Sky, an initial offer of 390p-a-share had been proposed, marking a significant premium compared to the 356p the stock was trading at prior to the bid being publicised.
It was also suggested that Bain was preparing a second offer, although it remains unclear whether this has been submitted.
Chemring, employing approximately 2,700 people, offers products and services to the aerospace, defence, and security markets, including NASA and Elon Musk’s SpaceX.
The defence sector is anticipated to experience growth due to increased spending triggered by President Donald Trump’s return to the White House.
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 plummeted 13 per cent in December after it announced its results, with issues at a US plant overshadowing growth forecasts.
The London Stock Exchange is facing a takeover bid amidst a turbulent period marked by continuous snubs and overseas takeovers over the past year.
In December 2024, billionaire Daniel Křetínský, also known as the ‘Czech Sphinx’, had his £3.6bn takeover of the Royal Mail greenlit by the UK government.
Meanwhile, challenger bank Monument is reportedly considering a US flotation, further undermining the appeal of the London market.
