VT Group buys four vehicle support businesses

Manufacturing News, Source : TheManufacturer.com
Published : 28 Apr 2006 9:41
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Shipbuilding and support services company, VT Group, has acquired four vehicle support businesses from RAC, part of insurance giant Aviva, for a total of £87 million.

VT announced today that it has acquired Lex Transfleet Limited, Lex Defence Limited, Lex Defence Management Limited and RAC Software Solutions Limited which together had a turnover of £140 million for the year ended December 31, 2005. Profit before interest and tax was £10.3 million with a total order book in excess of £1.25 billion.

The companies provide fleet management and administration services; maintenance, repair and logistic support; vehicle provision and disposal; software and support, and asset finance.

The companies currently provide 14,000 vehicles to MoD including all non-combat vehicles, emergency vehicles and other specialist vehicles, while Lex Transfleet is the exclusive provider of fleet management and maintenance services for British Airways at its major UK terminals.

A new contract with the Metropolitan Police, starting this month, will focus on fleet management, repair and short term rental services covering 3,600 vehicles.

VT said that the acquisition would provide a strong strategic fit with its existing defence support services business, and would be funded from a combination of the Group’s existing cash balances and a new debt facility.

VT chief executive Paul Lester commented: “This acquisition is highly complementary to our defence support work in offering turnkey asset availability and capability solutions to the MoD. The land-based solutions provide strong similarities with VT Defence’s existing contracts for MoD in ships and aircraft.

“We have worked closely with these businesses over the past five years through our joint bid for Airfield Support Services, during which time we got to know them well. They are highly regarded in the defence sector and by their customers.”

Mr Lester added that the new businesses would provide scope for migrating additional vehicle support skills into VT’s US operations where the Group already manages 2,500 military support vehicles. They would also give VT the opportunity to expand its activities in the emergency sector.

“This major move offers an exciting combination of existing contracts and scope for considerable future development,” he said.

 

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