Babcock International Group PLC (“Babcock” or “the Group”) 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 consideration of AUD60 million (approximately £32 million). The acquisition is subject to customary approvals. The NSM joint venture was established in 2012 to maintain 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.
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.”
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 programs. For the year ended 31 March 2021, NSM reported revenue of AUD254 million (Babcock has equity accounted 50% of NSM’s results in the year ending 31 March 2021). NSM has approximately 300 employees.
Babcock International Group plc is a British aerospace, defense, and nuclear engineering services company based in London, England. It specializes in managing complex assets and infrastructure. Although the company has civil contracts, its main business is with public bodies, particularly the United Kingdom’s Ministry of Defence and Network Rail. The company has four operating sectors, with overseas operations based in Africa, North America, South America, Europe, and Australia. Babcock is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
