Mon, 27 Dec 2021 | BUSINESS SALE
Babcock International group has announced that it has sold its Power business to M Group Services for £50 million. The gross cash consideration reflects approximately a 7.1x multiple of the division’s £7 million in pre-tax profits for the year ending March 31 2021, generated on total revenues of £70 million.
The Power business is among the UK’s leading providers of engineering services for overhead line electric transmission and distribution, Babcock says. Its clients include National Grid PLC, Western Power Distribution and Scottish Power Energy Networks.
The business formed part of the Land sector at the wider Babcock Group, which also has a major presence in the defence, aerospace and nuclear engineering sectors. Post-sale, the business will be integrated into M Group’s Morrison Energy Services division.
The sale forms part of Babcock’s divestment strategy, through which it is seeking to simplify its structure and improve its environmental, social and corporate governance (ESG). The group has made numerous sales this year, including offsetting the Frazer-Nash Consultancy to American firm KBR for £293 million and selling its lossmaking oil and gas aviation business to CHC Group LLC for £10 million.
David Lockwood, CEO of Babcock, said: “I’m delighted that we continue to make real strides in delivering our plan of streamlining the Group. The business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations.”
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