Babcock eyes a bigger slice of the Australian naval sustainment market
The Naval Ship Management JV between Babcock and UGL cut its teeth with work on RAN Anzac-class frigates. (Photo: RAN)
Babcock is buying out its partner in the Naval Ship Management JV.
Babcock is to gain full ownership of its Naval Ship Management (NSM) JV for Australian naval sustainment.
The UK-based company announced in a 15 February statement to the London Stock Exchange that it has entered into an agreement to buy out UGL’s 50% stake in NSM for A$60 million ($42.68 million), ‘subject to customary approvals’.
Babcock’s stated aim is to strengthen the breadth of its support to the Australian Defence Force's maritime capability ‘and to provide additional capability for Australia's current and future maritime programmes’.
Babcock and UGL established NSM in 2012 to provide maintenance support for Royal Australian Navy Anzac-class frigates. The JV evolved since then to provide maritime sustainment services for other vessels such as the two Canberra-class landing helicopter docks.
In its most recent full-year results (for 12 months to 31 March 2021), NSM posted revenues of A$254 million.
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