LSC - Military Logistics 1998 MBO/Acquisition

British military logistics specialist wins place on world stage

LSC Group partners with Lockheed Martin

An Anglo-US working partnership to share in developing new military logistics technology is expected to boost highly-specialised British software business with the United States and worldwide.

The partnership has been forged between Lockheed Martin, one of the world`s largest defence companies, and LSC Group, the UK`s largest military logistics group based at Tamworth, Staffordshire.

The two companies will share technology to become joint world-class suppliers in the specialised sector of military logistics support during a five-year expansion programme. Lockheed Martin will also help market LSC products in the United States.

Initially some of the world`s most advanced technology will be transferred from Lockheed Martin in the United States to LSC. The British specialists will use the links together with their own development work to produce new software to run weapons development and production programmes, and to manage military equipment in-service on the ground, in the air, and at sea.

Former Air Commodore Martin Palmer, aged 56, LSC`s managing director, led an £8m management buy-out of LSC last year with the backing of Gresham Trust, the UK venture capital company. Martin Palmer used to be head of the NATO electronic superhighway initiative and a director of Ministry of Defence procurement policy.

Martin Palmer says, "For a fast-growing Midlands-based company to strike a partnership of this size with the world`s biggest in the business is a terrific accolade."

Ryan Robson of Gresham Trust, who is a non-executive director of LSC, says, "The partnership between Lockheed Martin and LSC will be a powerful force to reduce defence costs to nations by providing state of the art technology. Gresham Trust will back LSC during the company`s expansion."

Some of the information technology software to be provided by Lockheed Martin is being used in the development and construction of the United States F22 fighter which will dominate world air power well into the next century. The systems have already enabled suppliers working on the F22 project to cut engineering change times by over 60 per cent.

Nigel Strutt, director of international trade development at Lockheed Martin Aeronautical systems, says, "The new technology transfer programme will help LSC move towards becoming a major international player in the logistics information technology market place."