VT Group will look to US and UK for acquisitions

VT Group is preparing to seek acquisitions targets in the US and UK engineering services sectors between late 2009 and 2010 with a war chest of up to GBP400 million (USD607 million) as the divestment of its 45 per cent stake in BVT Surface Fleet draws near.

The previously announced sale of the stake in the naval shipbuilding joint venture (created in mid-2008 with partner BAE Systems) will mark the end of VT Group’s involvement in naval construction, while yielding a minimum gross windfall of GBP380 million.

The Group – which will then concentrate solely on support services – reiterated that it is looking towards acquisition targets in the United States or United Kingdom; operating within the engineering services domain; with a predicted timescale of late 2009 to mid-2010.

“We believe this [period] is a good window for a cash rich business to look for acquisitions,” VT’s chief executive Paul Lester said on 13 May.

janes.com