Babcock International Group PLC

M&A Activity • Nov 19, 2014

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 4598X

Babcock International Group PLC

19 November 2014

19 November 2014

Babcock International Group PLC (Babcock or the Group)

Preferred bidder for the acquisition of Defence Support Group

Babcock is pleased to announce that it has been selected by the Ministry of Defence (MoD) as preferred bidder for the acquisition of the Defence Support Group (DSG).  The acquisition agreement includes a contract to provide services to the MoD for 10 years, with an option to extend for a further five years. 

DSG is the MoD agency responsible for storage, maintenance, repair and overhaul of military vehicles and equipment. It plays a key role in ensuring that the Army is able to train and be ready to deploy. Babcock will work with the MoD to complete the acquisition of DSG by 31 March 2015 and start the service provision contract on 1 April 2015. 

Babcock currently provides world class fleet management and equipment support to the MoD through its white fleet and engineering vehicle fleet provision and management contracts as well as its Army training contracts.  The acquisition of DSG builds on Babcock's engineering and services heritage and will provide the Army with output based services for fleet management and equipment support that will enhance operational readiness as well as increase efficiency.

Peter Rogers, Chief Executive commented

"We are delighted that we are growing and strengthening our partnership with the Ministry of Defence through the acquisition of DSG.  We are committed to working with our customer to ensure we are responsive to the evolving needs of the Army whilst achieving improved performance levels, enhanced operational agility and greater cost efficiencies." 

Enquiries

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

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEAAFNFLXLFFF