Thursday, December 18, 2014

Acquisition of the Defence Support Group

December 17, 2014 - 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.

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