VT Group $25.5 Million Acquisition
Strengthens U.S. business
April 1, 2005
UNITED KINGDOM--Support services and
shipbuilding company VT Group, has added to its capability in the
United States with the acquisition, through its US subsidiary VT
Griffin Services, of Washington-based The Cube Corporation.
The business operates largely through government funded
contracts with an order book of more than $400 million and an
annual turnover of approximately $100 million, taking VT Griffin's
anticipated annual turnover in excess of $300 million for 2005/6.
The acquisition is for a consideration of $25.5 million, funded
from cash reserves. The Cube had an unaudited operating profit of
$3.4 million for the year to the end of December 2004. Net assets
at this time were $13 million. The company's work is principally
facilities management for various Government agencies throughout
the US. The Cube will extend VT Griffin's support services
capabilities with the US Department of Defense and will also bring
access to further important Federal Government customers including
NASA, the Department of Labor and the Department of Agriculture. VT
Group Chief Executive Paul Lester commented: "Cube is another step
in our strategy of growing our business in the important US market
to an annual turnover of $500 million. It further strengthens VT
Griffin's progress towards becoming a key supplier of support
services to the Federal Government. In addition, the acquisition
will provide us with an active presence close to the centre of
Federal Government and our major customers." VT's latest
acquisition will add an additional 1,000 employees to its workforce
with The Cube's major contracts including the NASA facilities at
Wallops Island in Virginia and Fort Bliss Army base in Texas.
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