Babcock International Group PLC (LON:BAB) has announced 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 International 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.”