Babcock International Group signed Fr. contract of sale acquire the remaining 50% stake in the Naval Ship Management (NSM) joint venture of Australia for $ 42.8 million (A $ 60 million).
The agreement was signed with his longtime joint venture partner.
The transaction is subject to normal approval.
In 2012, this JV was established to service ANZAC-class frigates of the Royal Australian Navy.
Since its inception, the business has become a strategic partner in maritime security, supporting not only the Anzac class under the Warship Asset Management Agreement, but also two Canberra-class landing helicopter docks (LHD) and 12 LHD landing craft.
Currently, NSM employs about 300 people.
The agreement will allow Babcock to strengthen its support for the naval capabilities of the Australian Defense Forces, as well as provide additional capacity for existing and future naval programs.
Babcock CEO David Lockwood said: “We are very proud of the success of NSM since its inception almost ten years ago. We look forward to continuing to provide innovative and highly qualified support to the Australian Defense Forces as our presence in this important market continues to grow. ”
For the year ended March 31, 2021, NSM’s revenue was $ 181 million (A $ 254 million). Babcock’s equity was 50% of the NSM results.
In December 2021, Babcock International was selected as preferred tender for upgrading and maintaining a high-frequency communications defense system to support the Australian Armed Forces over the next decade with an additional four extension options, each lasting two years.
That same month, Babcock announced the completion of its new Advanced assembly hall at Rosyth in Scotland.
Known as The Venturer Building, the facility will initially be used to assemble Royal Navy frigates Type 31.
https://www.naval-technology.com/dashboards/deals-dashboards/babcock-to-buy-remaining-50-stake-in-australias-naval-ship-management/ Babcock will buy the remaining 50% stake in Australian Naval Ship Management