KBR and Rheinmetall join forces to acquire UK Defence Support Group

17 September 2014 (Last Updated September 17th, 2014 18:30)

Rheinmetall Defence and KBR have submitted a joint venture (JV) bid to acquire the UK’s state-owned military vehicle and small-arms maintenance and repair company, Defence Support Group (DSG).

Rheinmetall Defence and KBR have submitted a joint venture (JV) bid to acquire the UK's state-owned military vehicle and small-arms maintenance and repair company, Defence Support Group (DSG).

Under the KBR-Rheinmetall ownership, DSG is expected to become a centre of excellence for defence engineering, while remaining a trusted partner, implementing the UK Army's strategy for equipment support.

"The acquisition provides an excellent opportunity for the DSG to develop new business opportunities."

KBR Infrastructure, Government and Power, Europe, Middle East and Africa business unit president Andrew Pringle said: "KBR is confident that its long track record of programme delivery, working with the MoD (Ministry of Defence) over the last 25 years, including experience in building and operating the existing DSG facility in Camp Bastion, Afghanistan, will make for a very strong contender.

"With innovative thinking, I am confident we will provide a more efficient, value for money and agile solution.

"The acquisition provides an excellent opportunity for the DSG to develop new business opportunities and we are certain that our combined capabilities, supported by those of the existing workforce, will make for an unparalleled partnership."

Rheinmetall Defence UK director Dr Deniz Akituerk said: "The combination of Rheinmetall's land systems engineering capability, KBR's unparalleled project management skills and the knowledge and dedication of the DSG workforce makes a compelling case for the acquisition of DSG.

"Together, we will ensure that DSG remains a flexible and reliable element of the army support system, whilst we invest in developing the business to address the new sectors in the UK and overseas."

Established in April 2008, DSG is a wholly owned trading fund of the UK MoD, and provides maintenance, repair and overhaul for military air and land equipment, mobile and in-barracks equipment support, fleet management, calibration, electronics, components and logistics support.

Other companies bidding to take over DSG include Dyncorp International, General Dynamics, Northrop Grumman and URS, as reported by DefenseNews.

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