Babcock Regulatory News (BAB)

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." 

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