REG - Babcock Intnl Group - Babcock to acquire balance of Australian naval JV

Babcock InternationalAnnouncement

15/02/2022 07:00

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RNS Number : 6537B  Babcock International Group PLC  15 February 2022

Babcock to acquire remaining 50% of its Australian naval sustainment joint
venture

15 February 2022

 

Babcock International Group PLC ("Babcock" or "the Group") today announced
that it has entered into a Sales and Purchase Agreement to acquire the
remaining 50% interest in its Australian Naval Ship Management (NSM) joint
venture from its long-term joint venture partner in Australia, for a
consideration of AUD60 million (approximately £32 million). The acquisition
is subject to customary approvals.

 

The NSM joint venture was established in 2012 to maintain of the Royal
Australian Navy's ANZAC class frigates. Today the business has evolved into a
strategic maritime sustainment partner to Australia, supporting not only the
Anzac class under the Warship Asset Management Agreement, but two Canberra
Class Landing Helicopter Docks (LHD) and 12 LHD Landing Craft. NSM has
approximately 300 employees.

 

The acquisition will allow Babcock Australasia, one of the Group's focus
countries, to further strengthen 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.

 

Babcock CEO 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."

 

For the year ended 31 March 2021, NSM reported revenue of AUD254 million
(Babcock has equity accounted 50% of NSM's results in year ending 31 March
2021).

 

 

Ends

 

 

 For further information:

 Andrew Gollan, Director of Investor Relations  +44 (0)7936 039004
 Kate Hill, Group Director of Communications    +44 (0)20 7355 5312

 Tulchan Communications
 Olivia Peters / Harry Cameron                  +44 (0)20 7353 4200

 

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