Wed, 01 Sep 2021 | BUSINESS SALE
Defence and engineering firm Babcock International Group has sold its oil and gas aviation division to helicopter specialist CHC Group LLC in a £10 million deal. The sale forms part of Babcock’s targeted disposal programme, through which the group is aiming to raise at least £400 million in sales to reduce its net debt.
In the year to March 31 2021, the division reported a pre-tax loss of £2 million and underlying profit of £2 million on revenue of £154 million. At the time, the firm’s gross assets were valued at £256 million. In Babcock Group’s most recent annual results, reported in July, it posted an operating loss of £1.64 billion with net debt standing at £1.4 billion.
Babcock’s oil and gas aviation division provides transportation services for offshore oil and gas crews working in the UK, Australia and Denmark. The business is based in Aberdeen, operating a fleet of approximately 30 aircraft at its three locations and employing over 500 staff.
The sale comes in the wake of Babcock’s £293 million divestment of the Frazer-Nash Consultancy to American firm KBR. The company, which operated in Babcock’s marine division, had been part of the group for 14 years, providing services including submarine design.
The sale of its oil and gas aviation business was described by Babcock CEO David Lockwood as part of the group’s strategy to “streamline and focus” on its key markets.
Lockwood added: “Divesting at least £400m of businesses will enable us to reduce complexity and increase our focus as we return Babcock to strength. The oil and gas aviation business has found a new home and we wish them all the best for the future."
Find businesses for sale here.
If you are looking for an exit, we can help!
Long-established niche steel profilers based in their own 17,700 sq. ft factory unit in the West Midlands.
FREEHOLD
Based in Southern England, this is a retirement sale of a long established company with a quality reputation and international customer base.
LEASEHOLD
Offered as a fully relocatable opportunity. Our clients are selling the business to facilitate potential retirement plans. Excellent industry reputation. Offers invited.
RELOCATABLE
24
|
Jun
|
E-commerce imports retailer up for sale for £1.6m | BUSINESS SALE
Deals Incorporated, a Manchester-based e-commerce retailer t...
23
|
Jun
|
Auto Trader completes acquisition of Autorama at nearly 16x gross profits | BUSINESS SALE
Auto Trader has completed the acquisition of new vehicle lea...
22
|
Jun
|
Acquisitive ESG consultancy set to be sold | BUSINESS SALE
An acquisitive environmental and sustainability consultancy ...
Sign up to receive our acquisition alert emails to get your FREE guide
27
|
Dec
|
Babcock sells UK Power business at 7.1x pre-tax profits | BUSINESS SALE
Babcock International group has announced that it has sold i...
16
|
Sep
|
Defence Support Group prepares to be bought privately | BUSINESS SALE
The Government-owned Defence Support Group (DSG) is getting ...
20
|
Jun
|
LearnDirect gears up for sale by auction | BUSINESS SALE
LearnDirect, the online adult skills training business, has ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources