Virginia-based ADG has two principal operating subsidiaries - Mecar in Nivelles, Belgium, and Mecar USA Inc which is based in Marshall, Texas.

Mecar is a niche manufacturer of medium and large calibre ammunition, particularly for modern, light armoured vehicles.

Mecar USA provides load, assemble and pack and procurement services for the US government and prime contractors.

In the year ended 31 December 2008, ADG reported an audited operating profit, before non-recurring head office costs, of $9.7m on revenue of $144m.

Gross assets as at that date were $104m.

ADG's unaudited revenue for the nine months to 30 September 2009 was $115m (unaudited nine months to 30 September 2008: $116m).

The acquisition is expected to enhance Chemring's earnings in the first full financial year post-completion.

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