Babcock International Group 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 a 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 the ANZAC class under the Warship Asset Management Agreement, two Canberra Class Landing Helicopter Docks (LHD), and 12 LHD Landing Craft.
The acquisition will allow Babcock Australasia to further strengthen the breadth of its support to the Australian Defence Force’s maritime capability and to provide additional capability for the country’s current and future maritime programs.
“We’re very proud of the success of NSM since its formation nearly a decade ago,” said Babcock CEO, David Lockwood. “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.”