Babcock finalises sale of energy business as it seeks to streamline operations
Babcock has finalised the sale of its energy business today for a total of £50m, as it seeks to streamline the company.
The London-based aerospace, defence and nuclear engineering services company, had been delivering power to National Grid, Scottish Power Energy Networks and Western Power Distribution.
The energy unit, which pulled in a £70m profit before tax for the year to March 31, will now form part of Morrison Energy Services, a division of M Group Services.
It comes as an energy pricing crisis sweeps Europe, which has prompted the collapse of a number of energy suppliers in the UK.
Babcock boss David Lockwood said: “The business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations.
“I’m delighted that we continue to make real strides in delivering our plan of streamlining the group.”
The deal follows the disposal of its oil and gas aviation business, which was completed in August for around £10m.
Babcock also bolstered its balance sheet by selling its stake in AirTanker Holdings, it said in its half year results earlier this month, which unlocked some £95m for the company.
“We are on-track with our turnaround strategy with around £400m of disposals to bolster our balance sheet announced to date,” Lockwood said at the time.
“We will continue to align our portfolio to best support the group’s capital allocation priorities and future growth. The ongoing implementation of our new operating model means Babcock will be a simplified, more focused group.”