REG - Babcock Intnl Group - Disposal programme successfully concluded

Babcock InternationalAnnouncement

01/03/2023 07:00

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RNS Number : 4744R  Babcock International Group PLC  01 March 2023

01 March 2023

 

Disposal programme successfully concluded

 

Babcock International Group PLC ("Babcock" or "the Group") is pleased to
announce the conclusion of its portfolio alignment programme with the
completion of the sale of certain of its aerial emergency businesses (AES) to
Ancala Partners.

As announced on 19 July 2022, the AES businesses were sold for a cash
consideration of €136.2 million (c. £120 million), before completion
adjustments and transaction costs. The proceeds will be used to reduce debt.

This follows the sale of part of Babcock's civil training business to Inspirit
Capital on 01 February 2023.

The completion of these two disposals concludes the Group's programme of
portfolio alignment designed to reduce complexity, focus the Group on its
chosen markets and strengthen the balance sheet.

The programme, initially announced on 13 April 2021, has generated gross
proceeds of c. £570 million and transferred leases of c. £340 million. As a
result, defence now accounts for around two-thirds of Group revenue.

Babcock CEO David Lockwood said:

"We've done what we said we'd do at the start of our turnaround: we've
strengthened the balance sheet and reduced complexity. Around two-thirds of
the Group is now focused on defence, and we are well positioned for future
growth opportunities in our core markets.

"The AES and civil training businesses are both in good hands, and I wish
their new owners every success in growing the businesses further."

 

ENDS

 

 

 For further information:
 Andrew Gollan, Director of Investor Relations  +44 (0)7936 039004
 Kate Hill, Group Director of Communications    +44 (0)20 7355 5312

 Tulchan Communications
 Olivia Peters / Harry Cameron                  +44 (0)20 7353 4200

 

 

Note: The AES businesses sold provide aerial emergency medical services,
firefighting and search & rescue to customers and communities in Italy,
Spain, Portugal, Norway, Sweden and Finland and had revenue of £405 million
in FY22 and a profit contribution of £13 million. Babcock retains its aerial
emergency services businesses in its focus countries of the UK, France, Canada
and Australia.

 

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