Vosper Thornycroft Holdings PLC
19 May 2000
Vosper Thornycroft Holdings plc
VT ACQUISITION STRENGTHENS TRI-SERVICE SUPPORT SERVICES
Vosper Thornycroft ('VT') has made a major addition to
its Support Services activities by signing a contract to
acquire the business of Bombardier Defence Services UK
('BDSUK') including its wholly owned subsidiary Airwork
Ltd, a leading provider of aircraft and equipment
maintenance, repair and rectification, flying training,
and technical and logistics support services to the
military. The completion of the transaction is
conditional upon the novation of certain contracts,
primarily with the UK MOD.
BDSUK is a wholly owned business of Canadian-based
Bombardier Inc. and VT will pay a consideration of £30m
from its cash reserves. BDSUK's turnover and profit for
the financial year ended 31 January 2000, were £55.4m
and £4.2m respectively.
VT has developed a strong business based on Shipbuilding,
Support Services and Marine Products. Turnover from
Support Services has grown by over 500 per cent in the
past four years and now accounts for more than 40 per
cent of group turnover. The acquisition of BDSUK will
provide the basis for further growth. Following
completion the business will be operated under the name
of VT Aerospace.
VT Chief Executive Martin Jay commented: 'We are already
established as a leading provider of training and other
services for the Royal Navy and the British Army. Our
strategy is to become the leading tri-service provider
of military Support Services in the UK. The acquisition
of the BDSUK business will make us a major player in the
supply of training and maintenance to the RAF and
overseas Air Forces, particularly in the Middle East
where we are already well established in supplying naval
'VT expects the BDSUK business to expand aggressively in
the future and we believe the new acquisition will make a
significant contribution to VT's continuing development.'
For further enquiries:
Vosper Thornycroft Holdings plc 023 80 426000
Martin Jay, Chief Executive
Chris Cundy, Finance Director
Philip Rood, Public Relations
Notes to Editors
* BDSUK employs some 2,500 people in the UK and overseas.
Turnover is divided equally between operations in the UK
and Middle East with a strong portfolio of 15 contracts.
* In 1999, BDSUK was awarded the Light Aircraft Flying
Task which is the RAF's Pathfinder PFI contract. This is
a £110 million, ten-year contract, formerly known as the
University Air Squadron.
* In the Middle East, BDSUK provides line maintenance of
aircraft for the Royal Air Force Oman and, on a sub-
contract basis through BAESYSTEMS, to the Kuwait Air
Force. This business is contracted through BDSUK
subsidiary Airwork Ltd..