Serco bolsters US defence business with US$295mln WBB acquisition


Serco Group PLC (LON:SRP)  is to strengthen its US defence services operations with the acquisition of US Air Force and Army-focused Whitney, Bradley & Brown for US$295mln.

The acquisition, from US private equity group HIG Capital, will broaden its reach to all major segments of the US defence services market, the FTSE 250 group said, while also being immediately earnings accretive.

In calendar year 2021, WBB is expected to generate revenue of around US$230mln (£168mln), and make underlying profits [EBITDA] of US$29mln (£21m)

Serco said it will pay for the acquisition in cash from its existing facilities.

The group already works for the US Navy and said the addition of WBB will add 20% to Serco’s existing $0.9bn of North American defence revenues as well as 1,000 skilled employees of which 80% have security clearances while 200 are classified as “Subject Matter Experts”.

Rupert Soames, Serco’s group chief executive, said: “Growing the scale, reach and capability of Serco in the largest defence market in the world is one of our strategic objectives.

“WBB takes our North American defence revenues to around US$1.1bn and gives us credible positions in other parts of the market including Air Force, Space Force, Army, the Missile Defense Agency and the Office of the Secretary of Defense.” 


Please enter your comment!
Please enter your name here