LONDON, Dec. 17 (UPI) -- Britain's Ministry of Defense has sold to Babcock International its organization that maintains and repairs key military equipment.
Babcock International, an engineering firm, bought the Defense Support Group for about $219.6 million.
"I am delighted with the successful outcome of this transaction," said Minister for Defense Equipment, Support and Technology Philip Dunn. "Signing this deal with Babcock will put the Defense Support Group on a sustainable long-term footing and will transform the equipment maintenance and repair support that the Army relies on both at home and overseas.
"The £140 million income from the sale and the significant savings over the life of the contract represent outstanding value for money for the tax payer and will allow us to continue to focus our resources on the front line."
The Ministry of Defense said the deal includes a 10-year contract with Babcock for the maintenance, repair, overhaul and storage of current military vehicles and light weapons.
The 10-year contract takes effect in April.
