BAE has agreed to buy out the 45 per cent stake its partner VT Group has in their joint venture BVT Surface Fleet.
The deal is worth almost £300m and will sees VT exit the shipbuilding industry upon which it was founded.
VT will now focus exclusively on support services and part of the deal will enable the company to buy BAE’s 50 per cent stake in Flagship Training – the UK’s largest education and training company which partners the Royal Navy – for £70m.
Paul Lester, chief executive of VT, said: “It will leave us in a strong financial position with net cash on our balance sheet and positions us to continue to pursue a growth strategy focusing exclusively on support services.”
