Babcock inks deal to snap up company maintaining Australian navy ships
British aerospace and defence company Babcock has announced plans to snap up a company that manages Australian navy ships.
The FTSE 250 security company today announced that it has inked a deal to acquire the remaining 50 per cent stake in its joint venture with Australian Naval Ship Management. Babcock is dishing out AUD60m (£32m) to buy out its long-term partner.
Babcock chief executive David Lockwood said, “we’re very proud of the success of NSM since its formation nearly a decade ago. We look forward to continuing to provide innovative and highly skilled support to the Australian Defence Force as we further develop our presence in this important market.”
The joint venture between the companies was set up in 2012 to manage the Royal Australian Navy’s frigates. The business has evolved into a strategic maritime sustainment partner to Australia, supporting the armed forces through a warship asset management agreement as well as two Canberra Class landing helicopter docks and landing craft.
Australian Naval Ship Management expanded to 300 employees and last year made profits of AUD254m, with Babcock entitled to an equity share of 50 per cent.
In an announcement today Babcock said it intends to further the breadth of its support to the Australian Defence Force’s maritime capability and to provide additional capability for Australia’s current and future maritime programmes.
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