LONDON — U.S. equity management group Carlyle has terminated long-running takeover talks with British-based defense company Chemring.
Carlyle announced Nov. 7 that it would not be making an offer for Chemring. The two sides have been in discussions about a possible bid since mid-August.
Chemring has issued several profit warnings this year, including two during the period of the takeover talks. Technical issues with products, contract delays and other issues have impacted profits and share earnings for the year.
David Price, Chemring’s chief executive, left the company last month to be replaced by turnaround specialist Mark Papworth from the Wood Group, an oil services company.
The British company, a leading producer of counter-IED products, countermeasures and munitions, had revenues of 745 million pounds ($1.2 billion) in 2011.
In a statement, Chemring said it “faces near term challenges” but the market-leading position of its products and geographic spread of customers beyond NATO “provides the business with further opportunities and gives a balanced exposure to global defense spending.”