Babcock completes AES business disposals
Image courtesy Babcock
As announced on 19th 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 1st 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 (above) 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."
