VT Group, the support services and ship building company, has purchased Lex Vehicle Solutions in an £87m acquisition from RAC (part of Aviva).
The package includes; Lex Transfleet Airside Solutions, Lex Defence, RAC Software Solutions and Lex Emergency Services, which will now be known as VT Vehicle Solutions.
It will be funded from a combination of the Group’s existing cash balances and a new debt facility. In addition to this new facility, VT has recently completed the re-financing of its OPV PFI contract, resulting in on-balance sheet PFI debt being reduced by £51 million. The sale and leaseback of certain VT Communications assets has also been completed, with the result that £48 million of short term debt has been repaid.
VT says that together, the businesses had a turnover of £140 million for 2005 with gross assets of £81.3 million. The four businesses have some 27,000 vehicles under their fleet management. Over 14,000 are provided under a contract with the MoD to supply all non-combat vehicles including cars, emergency vehicles and other specialist vehicles. In addition, over 3,000 construction and related vehicles are provided to the MoD.
