Agility in $50 billion U.S. deal, stock up

By Ulf Laessing

KUWAIT (Reuters) - Kuwaiti logistics provider Agility (AGLT.KW) said on Saturday it was part of a group with U.S. firm Dyncorp International (DCP.N) which won a $50 billion deal from the U.S. military.

Agility shares rallied 6.6 percent after the news.

Agility said in a statement on the Kuwait bourse Web site it would provide various logistics, supply and warehousing services as part of the deal.

The contract would run 10 years, of which 9 were optional, and would have a value of $50 billion for the whole period, it added. The deal, which included food and oil supply services, would be worth $5 billion for each year.

Agility, which is diversifying its business and expanding abroad, said it could not currently determine its exact share of the deal.

The total deal also includes U.S. firms KBR (KBR.N), a former unit of Halliburton Co. (HAL.N), and Fluor Corp (FLR.N) with a combined potential value of up to $150 billion to provide services to the U.S. military in the Middle East.

EXPANSION

Agility said on June 16 the U.S. military had renewed a 5-year deal worth $1.5 billion, extending the deal to its third consecutive year. The contract is up for yearly renewal.

The U.S. government said on June 1 it had awarded Agility another supply and food deal worth up to $2.8 billion.

Agility has said it was expanding in the Middle East, Africa or Eastern Europe to diversify its business and lower its exposure to U.S. military deals, a key source of income.

Agility, previously known as Public Warehousing Co., has bought at least seven smaller rivals this year including New Zealand-based LEP International and Chinese freight company Guangzhou Runtang International Transport Company Limited.