Defence equipment maker Chemring Group has reported chief executive David Price is to resign immediately, in a sudden development at the company which is in acquisition talks with US private equity company Carlyle Group, writes Reuters. Chemring has replaced Price with Mark Papworth, a former executive at oil industry services company John Wood Group. Papworth will take on the role on November 5.
Reuters – Defence equipment maker Chemring Group Plc said Chief Executive David Price would resign immediately, in a sudden development at the company which is in acquisition talks with U.S. private equity company Carlyle Group .
Chemring has replaced Price with Mark Papworth, a former executive at oil industry services company John Wood Group Plc . Papworth will take on the role on Nov. 5.
Chemring shares were down 5 percent at 329 pence at 0720 GMT on Tuesday on the London Stock Exchange.
“This decision is a reflection of the board and … they feel that a change in leadership maximises the strength of the company’s position,” a company spokeswoman told Reuters.
“I wouldn’t interpret it as related to Carlyle in that respect.”
Carlyle was granted a second extension by the UK Takeover Panel earlier this month to hammer out a deal to buy Chemring, which makes defence equipment such as flares and explosive device detectors.
Papworth had been the chief executive at John Wood Group’s gas turbines services division and a member of the company’s board.
“During his tenure at Wood Group he implemented and delivered a strategic review which resulted in a successful turnaround, improved manufacturing capabilities and substantial improvements in profitability,” Chemring said.
Chemring and peers face lower defence spending in the United States and Europe as governments struggle to rein in budget deficits.
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