Aerospace, defense and security company Babcock International Group PLC (BAB) on Tuesday announced that it has entered into an agreement with funds managed by Ancala Partners, a mid-market infrastructure investor, for the sale of certain of its aerial emergency services businesses for 136.2 million euros or about 115 million pounds.
Babcock would retain its aerial emergency services businesses in its focus countries of the UK, France, Canada and Australia, where the Group also operates defense businesses.
Proceeds from the transaction would be retained for general corporate purposes.
The deal is expected to complete by the end of the calendar year.
These businesses provide aerial emergency medical services, firefighting and search & rescue to customers and communities in Italy, Spain, Portugal, Norway, Sweden and Finland.
For the year ended 31 March 2021 they reported revenues of 407 million pounds and a loss before tax of 177 million pounds, including a 6-million-pound contribution before allocated overheads, exceptional items and other one-off adjustments arising from the Contract Profitability and Balance Sheet review.
Based on unaudited figures for the fiscal ended 2022, the businesses have recorded revenue of 405 million pounds, and a loss before tax of 10 million pounds (an operating profit contribution of c 13 million pounds before allocated overheads).
Shares of Babcock International Group closed Monday's trading at 319.78 pence, up 12.58 pence or 4.10 percent from the previous close.
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