Bain Capital has targeted Chemring, a leading FTSE 250 defence group, with a bid that could value the company at roughly £1bn.

The private equity giant lodged at least one proposal in recent weeks, according to Sky News. Sources say Bain made an initial offer of 390p per share, slightly above the 356p trading price earlier in the week. Furthermore, a second bid was reportedly under preparation, although insiders remain unsure of how forcefully Bain will pursue Chemring.

Chemring serves key roles in the defence and aerospace sectors. It supplies high-tech products and services to organisations including NASA and SpaceX. The group manufactures infrared devices to help repel enemy attacks and employs roughly 2,700 people. Despite a record order book, its shares fell sharply after a US factory issue hurt profit margins.

Moreover, Chemring’s market capitalisation stands at about £975m. A typical takeover premium of 30% would boost its valuation to approximately £1.3bn. This bid follows a recent trend of takeover offers for London-listed companies. Activist investors are increasingly prominent, while London stocks remain relatively cheap by international standards.

Bain Capital, already active with assets like esure and a stake in Virgin Voyages, now steps into the defence arena. This move underscores its ambition to capitalise on opportunities in sectors that benefit from rising government defence spending.