VT expand in US

Southampton-based defence and support services company

is to acquire military aviation support specialists

(AEPCO) for $70m (£36m).

Depending on the company’s future performance, a further $5m (£2.6m) could be payable, with completion expected by January 2008.

AEPCO manages lifecycle support programmes, primarily for US Army helicopters, operating mainly out of Redstone Arsenal in Huntsville, Alabama, where its major customer is the US Army Aviation and Missile Command (AMCOM).

The company provides logistics, technical and programme management for helicopters including the Apache, Blackhawk, Chinook, Warrior and Cobra. Key services include lifecycle support for platforms, systems and equipment, integrated logistics, technical documentation and training.

Since signing the purchase agreement, AEPCO has been awarded $180m (£93m) worth of new contracts to provide support to the US Army for delivery over the next five years. This gives a total order book in excess of $450m (£233m). AEPCO will extend the group's support services in the US to higher added value contracts supplementing VT's existing work in base operations and systems upgrades for naval vessels.

VT Group chief executive Paul Lester said: 'The acquisition of AEPCO, particularly in light of the new contract wins, will help us to grow our business in the US further with its logistics, engineering and management skills.'

'It will provide us with a presence in the significant US Department of Defense logistics sector, where there is exciting potential for future growth. It will also strengthen VT Services' position as a major contractor to the Department of Defense.'