BABCOCK International yesterday said it has won a 21-year deal to maintain London Fire Brigade’s vehicle fleet.
The FTSE 100-listed engineering firm said it will manage 500 vehicles and 50,000 pieces of specialist equipment across Greater London, with the contract set to start on 13 November.
No deal value was disclosed, but Caroline de La Soujeole, analyst at Cantor Fitzgerald, estimated it would bring in between £12m and £20m per year.
“We are delighted to have been chosen as preferred bidder for this contract, which reflects our ability to provide market-leading support to the emergency services,” said chief executive Peter Rogers. “We look forward to working in partnership with the London Fire Brigade, supporting its delivery of vital services to make London a safer city and sustaining its status as a world-class fire and rescue service.”
Last week Babcock announced a long-expected deal to acquire helicopter firm Avincis for £920m, funded by a £1.1bn rights issue.
It said on Monday that, along with its joint venture partner Bechtel, it has been awarded a £7bn contract to manage the decommissioning of some of the UK’s oldest nuclear sites.
Shares closed up three per cent.