Acquisition

RNS Number : 9751Z

Babcock International Group PLC

17 December 2014

 

17 December 2014

Babcock International Group PLC (Babcock or the Group)

Acquisition of the Defence Support Group

Further to the announcement of 19 November 2014, Babcock confirms it has entered into contracts with the UK Ministry of Defence for the acquisition of the Defence Support Group (DSG) and its associated service provision contract.  Through this Babcock will exclusively provide the maintenance, repair, overhaul and storage of a range of current military vehicles and light weapons. 

Babcock will acquire DSG for a consideration of £140 million and estimates that the service provision contract and output based services will be worth c £2 billion over ten years.  It is expected the acquisition will complete on 31 March 2015 and the service provision contract will start on 1 April 2015.

Enquiries

Babcock International Group PLC	020 7355 5300
Franco Martinelli - Group Finance Director
Terri Wright - Head of Investor Relations
FTI Consulting	020 3727 1340
Nick Hasell

 

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