Babcock International Group Plc (BAB.L) said it has entered into a conditional agreement for the sale of VT Services Inc., the Group's US defence business to VT Holdings Inc, a special purpose vehicle backed by The Resolute Fund II, LP, a private investment fund managed by The Jordan Company II, LP for the consideration of $98.75 million. The consideration will be payable in cash on completion of the disposal as adjusted for changes in working capital transferred.
VT Services Inc. is an engineering support and facilities management business. The business was acquired as part of Babcock's acquisition of VT Group plc, which was completed in July 2010.
The net proceeds of the disposal will be used to reduce Babcock's total net debt position.
The disposal is expected to complete by the end of June 2012. The VT Services Inc. operations and impairment charge will be treated as discontinued at 31 March 2012.
For comments and feedback: editorial@rttnews.com