Ammunition manufacturer The Allied Defense Group Inc. said Wednesday it has completed the sale of its two subsidiaries to British defense company Chemring Group PLC for $59.6 million in cash, including the assumption of unspecified liabilities.
Under the terms of the deal, Chemring acquired all the stock in Mecar SPRL, which manufactures ammunition. It also obtained substantially all the assets of Mecar USA Inc., which provides load, assembly, pack and procurement services for the U.S. government and other contractors.
The transaction leaves Allied Defense Group with no significant operating assets, the company said.
It has scheduled a special meeting of shareholders for Sept. 30 in order to vote on a proposal to dissolve.
In conjunction with the completion of the asset sale, several of its directors have resigned. The board now consists of retired Maj. Gen. John G. Meyer Jr., and Charles S. Ream.
Shares in Allied Defense Group slipped a penny to $2.83 in afternoon trading.