KBR, Inc. announced today, following Carillion's recent insolvency, it has completed the acquisition of Carillion's interests in Aspire Defence.
Through the Aspire Defence joint venture KBR has supported the UK Ministry of Defence (MOD) on Project Allenby Connaught since 2006, under one of the largest infrastructure Private Finance Initiatives in the UK. Aspire provides high quality design, construction and base support services to the British Army for living and working accommodations.
KBR assumed operational control of the Aspire Defence joint ventures following Carillion's insolvency announcement in January – including the hiring of affected Carillion staff – and has maintained normal business operations without disruption to the delivery of services or performance.
"This acquisition and our commitment to maintain the stability of the project strengthens KBR's long-standing relationship with the UK MOD as a core client," said Stuart Bradie, KBR President and CEO. "KBR has spent more than 12 years delivering this program to re-house soldiers into fit for purpose accommodation and working facilities."
"We look forward to continuing to provide market-leading construction and long-term maintenance services in support of the Army Basing Programme within the Project Allenby Connaught footprint and to provide base support services across Salisbury Plain and Aldershot garrisons," Bradie continued. "This project underpins our long term relationship with the MOD whether at the home base, providing deployed operational support or acting as an integrator of complex defense equipment and systems."
With more than 22 years remaining on the Aspire contract this acquisition provides KBR with enduring, stable and profitable backlog. The impact to KBR's earnings and cash flows has already been included in 2018 Guidance issued on February 23, 2018.