23 April 2018 | Herpreet Kaur Grewal
KBR has announced that it has completed the acquisition of Carillion's interests in Aspire Defence following Carillion's recent insolvency.
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 hiring Carillion staff on the contract - and has maintained normal business operations without disruption to the delivery of services or performance.
Stuart Bradie, KBR president and CEO, said: "KBR has spent more than 12 years delivering this programme to rehouse soldiers into fit-for-purpose accommodation and working facilities."
KBR says it will continue to provide 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 added: "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 defence equipment and systems."
More than 22 years remain on the Aspire contract and the impact on KBR's earnings and cash flows has already been included in 2018 guidance issued on February 23, 2018.