VT GROUP PLC
02 February 2004
VT GROUP COMPLETES ACQUISITION OF JA JONES CONTRACTS
VT Group plc ("VT"), the support services and shipbuilding company, today
announces that it has completed the acquisition of ten support services
contracts in the United States held by JA Jones Services Group, which entered
Chapter 11 bankruptcy proceedings last year.
This acquisition will almost double VT's US support services' turnover , which
is carried out through VT Griffin Services. Total consideration of £18m will be
wholly funded from VT Group's cash resources.
The contracts, which have an annual turnover of over $100m and an order backlog
of $400m, employ approximately 800 people. They include seven contracts for the
US Navy, notably base maintenance at the major submarine facility in Kings Bay,
Georgia, which has over seven years to run. Among other contracts purchased are
base and facilities management activities for the Federal Aviation
Administration and local government.
VT Group Chief Executive Paul Lester commented: "The acquisition of these
contracts will provide an additional platform on which to develop our US support
services business underpinning our stated strategy to strengthen our presence in
the region and achieve turnover from our US support services operations of
US$500m within the next five years."
Notes to Editors
• VT Group is an international Government services provider. The Group
is divided into two businesses - support services and shipbuilding. Together
these activities employ 10,000 people with a turnover in excess of £600m.
• VT Support Services - comprising activities in both the military and
public sectors - now accounts for over two thirds of turnover. Military support
is tri-service and includes training, platform and equipment maintenance and
facilities management, while services for the public sector focus on training
and education, careers guidance, and secure communications.
• VT Shipbuilding designs and builds a wide range of vessels for the
Royal Navy and navies throughout the world. Smaller boats are also supplied to
the commercial market. Specialist marine equipment is provided to both the
naval and commercial sectors.
This information is provided by RNS
The company news service from the London Stock Exchange