VT Group
Encyclopedia
VT Group plc was a British defence and services company, formerly known as Vosper Thornycroft. The Company had diversified from shipbuilding into various engineering and support services, becoming involved in many areas of provision through five main operating groups: VT Communications
, VT Education and Skills, VT Services Inc and VT Support Services. VT Group finally exited the Shipbuilding industry in October 2009, after selling its 45% share of the Shipbuilding Joint Venture company BVT Surface Fleet
to BAE Systems
. Formerly listed on the London Stock Exchange
and a constituent of the FTSE 250 Index
, the remainder of the firm was acquired by Babcock International Group
in July 2010.
and J I Thornycroft of Woolston, Southampton
in 1966 at which time the Company became listed on the London Stock Exchange
as Vosper Thornycroft. Vosper Ltd built small boats and J I Thornycroft had a long history of building destroyers and similar sized craft. The company was nationalised by the Labour Government in the mid 1970s becoming a division of British Shipbuilders
. It became a commercial company again after a management buyout
in 1985.
Vosper Thornycroft flourished even during lean times for warship building, mainly through successful sales efforts in exports and diversification outside of the core shipbuilding business into training and support. In 1998, Vosper Thornycroft acquired the specialist military boatbuilder
Halmatic, based in Portchester
.
In 2001, in their most ambitious diversification project, VT started work on the US$55million superyacht Mirabella V
for former Avis Car Hire boss Joe Vittoria. At the time of its completion in 2004, Mirabella V was the world's largest single-masted sailing vessel with an overall length of 75 metres and a mast height of approximately 87 metres.
From 2002, the overall business was known as VT Group plc.
in Southampton
, Hampshire
but in 2003 relocated its shipbuilding operations to new facilities in the famous HMNB Portsmouth
Naval Dockyard under the name VT Shipbuilding. On 1 July 2008, VT Shipbuilding was merged with BAE Systems
' Glasgow
-based Surface Fleet Solutions subsidiary to form BVT Surface Fleet
. The VT Halmatic boatyard site in Portchester
was also sold off to Trafalgar Wharf
, with Halmatic also moving into Portsmouth Naval Base.
for £75m. As the provider of nuclear decommissioning and waste treatment engineering services, Project Services gave VT Group access to the nuclear industry in the UK and abroad. The business was renamed VT Nuclear Services.
valued its share at a minimum of £380 million subject to conditions, however VT Group was expected to make a cash injection into the business to offset difficulties with the Trinidad and Tobago and Oman contracts. Following the sale of VT Group's 45% share, BVT Surface Fleet was renamed BAE Systems Surface Ships to reflect the total ownership.
announced the boards of both companies had agreed to the purchase of VT Group for £1.32bn or 750p a share. Babcock offered 361.6p a share in cash, as well as 0.7 new Babcock shares for each VT Group share. The combined companies created a defence and support services group with sales of £3bn and more than 25,000 employees in Britain and the US. The merger was completed on 8 July 2010 with the delisting of VT Group's shares from the London Stock Exchange.
VT Communications
VT Communications was a part of VT Group plc. VT Communications was essentially the company formed from the privatisation of the BBC World Service transmitter sites. It was initially named Merlin Communications, then, after acquisition by VT, VT Merlin Communications...
, VT Education and Skills, VT Services Inc and VT Support Services. VT Group finally exited the Shipbuilding industry in October 2009, after selling its 45% share of the Shipbuilding Joint Venture company BVT Surface Fleet
BVT Surface Fleet
BAE Systems Surface Ships is a wholly owned subsidiary company of BAE Systems, specialising in naval surface shipbuilding, systems integration and through-life support...
to BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
. Formerly listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
, the remainder of the firm was acquired by Babcock International Group
Babcock International Group
Babcock International Group plc is a British-based support services company specialising in managing complex assets and infrastructure in safety-critical and mission-critical environments. Although the company has civil contracts, its main business is with public bodies, particularly the UK...
in July 2010.
History
The company was formed by the merger of two shipbuilding companies Vosper Limited of PortsmouthPortsmouth
Portsmouth is the second largest city in the ceremonial county of Hampshire on the south coast of England. Portsmouth is notable for being the United Kingdom's only island city; it is located mainly on Portsea Island...
and J I Thornycroft of Woolston, Southampton
Southampton
Southampton is the largest city in the county of Hampshire on the south coast of England, and is situated south-west of London and north-west of Portsmouth. Southampton is a major port and the closest city to the New Forest...
in 1966 at which time the Company became listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
as Vosper Thornycroft. Vosper Ltd built small boats and J I Thornycroft had a long history of building destroyers and similar sized craft. The company was nationalised by the Labour Government in the mid 1970s becoming a division of British Shipbuilders
British Shipbuilders
British Shipbuilders Corporation was a public corporation that owned and managed the shipbuilding industry in England and Scotland from 1977 and through the 1980s...
. It became a commercial company again after a management buyout
Management buyout
A management buyout is a form of acquisition where a company's existing managers acquire a large part or all of the company.- Overview :Management buyouts are similar in all major legal aspects to any other acquisition of a company...
in 1985.
Vosper Thornycroft flourished even during lean times for warship building, mainly through successful sales efforts in exports and diversification outside of the core shipbuilding business into training and support. In 1998, Vosper Thornycroft acquired the specialist military boatbuilder
Boat building
Boat building, one of the oldest branches of engineering, is concerned with constructing the hulls of boats and, for sailboats, the masts, spars and rigging.-Parts:* Bow - the front and generally sharp end of the hull...
Halmatic, based in Portchester
Portchester
Portchester is a locality and suburb 10km northwest of Portsmouth, England. It is part of the borough of Fareham in Hampshire. Once a small village, Portchester is now a busy part of the expanding conurbation between Portsmouth and Southampton, on the A27 main thoroughfare...
.
In 2001, in their most ambitious diversification project, VT started work on the US$55million superyacht Mirabella V
Mirabella V
Mirabella V is a sloop-rigged super yacht launched in 2003. At an estimated cost of over US$50million, she is the largest single-masted yacht ever built.-Ownership:...
for former Avis Car Hire boss Joe Vittoria. At the time of its completion in 2004, Mirabella V was the world's largest single-masted sailing vessel with an overall length of 75 metres and a mast height of approximately 87 metres.
From 2002, the overall business was known as VT Group plc.
Move to Portsmouth Naval Base and creation of BVT Surface Fleet
From its formation in 1966, the company was based at the former Thornycroft shipbuilding yard at WoolstonWoolston, Southampton
Woolston is a suburb of Southampton, Hampshire, located on the eastern bank of the River Itchen. It is bounded by the River Itchen, Hampshire, Sholing, Peartree Green, Itchen and Weston.The area is rich in maritime and aviation history...
in Southampton
Southampton
Southampton is the largest city in the county of Hampshire on the south coast of England, and is situated south-west of London and north-west of Portsmouth. Southampton is a major port and the closest city to the New Forest...
, Hampshire
Hampshire
Hampshire is a county on the southern coast of England in the United Kingdom. The county town of Hampshire is Winchester, a historic cathedral city that was once the capital of England. Hampshire is notable for housing the original birthplaces of the Royal Navy, British Army, and Royal Air Force...
but in 2003 relocated its shipbuilding operations to new facilities in the famous HMNB Portsmouth
HMNB Portsmouth
Her Majesty's Naval Base Portsmouth is one of three operating bases in the United Kingdom for the British Royal Navy...
Naval Dockyard under the name VT Shipbuilding. On 1 July 2008, VT Shipbuilding was merged with BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
' Glasgow
Glasgow
Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...
-based Surface Fleet Solutions subsidiary to form BVT Surface Fleet
BVT Surface Fleet
BAE Systems Surface Ships is a wholly owned subsidiary company of BAE Systems, specialising in naval surface shipbuilding, systems integration and through-life support...
. The VT Halmatic boatyard site in Portchester
Portchester
Portchester is a locality and suburb 10km northwest of Portsmouth, England. It is part of the borough of Fareham in Hampshire. Once a small village, Portchester is now a busy part of the expanding conurbation between Portsmouth and Southampton, on the A27 main thoroughfare...
was also sold off to Trafalgar Wharf
Trafalgar Wharf, Portchester, Portsmouth
Trafalgar Wharf is a shipyard in Portsmouth accommodating marine engineering businesses ranging from sailmakers and boat brokers to boat builders. It was formerly the VT Halmatic shipyard, owned by VT Group and latterly by BVT Surface Fleet.-History:...
, with Halmatic also moving into Portsmouth Naval Base.
Entry into the Nuclear Industry
In January 2008, VT Group acquired BNG Project Services from the government-owned British Nuclear FuelsBNFL
British Nuclear Fuels Limited was a nuclear energy and fuels company owned by the UK Government. It was a former manufacturer and transporter of nuclear fuel , ran reactors, generated and sold electricity, reprocessed and managed spent fuel , and decommissioned nuclear plants and other similar...
for £75m. As the provider of nuclear decommissioning and waste treatment engineering services, Project Services gave VT Group access to the nuclear industry in the UK and abroad. The business was renamed VT Nuclear Services.
Exit from BVT
On 28 January 2009 VT Group announced its intention to sell its share of BVT Surface Fleet to BAE Systems. VT Group's put optionPut option
A put or put option is a contract between two parties to exchange an asset, the underlying, at a specified price, the strike, by a predetermined date, the expiry or maturity...
valued its share at a minimum of £380 million subject to conditions, however VT Group was expected to make a cash injection into the business to offset difficulties with the Trinidad and Tobago and Oman contracts. Following the sale of VT Group's 45% share, BVT Surface Fleet was renamed BAE Systems Surface Ships to reflect the total ownership.
Takeover by Babcock
In March 2010, Babcock International GroupBabcock International Group
Babcock International Group plc is a British-based support services company specialising in managing complex assets and infrastructure in safety-critical and mission-critical environments. Although the company has civil contracts, its main business is with public bodies, particularly the UK...
announced the boards of both companies had agreed to the purchase of VT Group for £1.32bn or 750p a share. Babcock offered 361.6p a share in cash, as well as 0.7 new Babcock shares for each VT Group share. The combined companies created a defence and support services group with sales of £3bn and more than 25,000 employees in Britain and the US. The merger was completed on 8 July 2010 with the delisting of VT Group's shares from the London Stock Exchange.