in Defence / Security

Babcock to sell Frazer-Nash

Posted 13 August 2021 · Add Comment

Babcock International Group announced today that it has entered into a definitive agreement with KBR for the sale of its wholly owned subsidiary Frazer-Nash Consultancy Limited.

Above: David Lockwood, CEO, Babcock.
Courtesy Babcock


The sale is for a cash consideration of £293 million (implying an enterprise value of £285m on a cash free/debt free basis), subject to routine closing adjustments and before transaction costs.

Headquartered in the UK, Frazer-Nash Consultancy delivers innovative engineering and technology solutions across a broad range of critical national infrastructure, helping to provide assurance to operators and regulators from a network of nine UK and four Australian locations. The consultancy, which has grown strongly since Babcock acquired it in 2007, employs around 900 people.

The sale forms part of Babcock’s targeted disposal programme, which aims to generate at least £400 million of proceeds in the next 12 months. Frazer-Nash Consultancy is an outstanding business which provides independent advice to its customers and on that basis has operated largely independently from Babcock. Proceeds from this transaction will be used to reduce net debt.

Babcock CEO David Lockwood said: “We are making real progress on our plan to streamline and focus the group on our key markets. Divesting at least £400 million of businesses in our targeted disposals programme will enable us to reduce complexity and increase our focus as we return Babcock to strength. Frazer-Nash Consultancy is a good fit for KBR and I wish them every success in growing the business further.”

The consultancy is part of Babcock’s Marine sector. For the year ended 31 March 2021 it reported total revenues of £100.5 million (year ended 31st March 2020: £101.9 million), profit before interest and tax of £13.5 million (year ended 31 March 2020 £17.1 million). As of 31st March 2021 gross assets were £79.9 million.

Completion of the agreement is subject to approval by the Australian foreign investment authority.

The agreement constitutes a class 2 transaction for the purposes of the UK Financial Conduct Authority’s Listing Rules and as such does not require Babcock shareholders’ approval.

 

 

 

 

Other Stories
Advertisement
Latest News

Flare Bright facility at Westcott officially opened by MP Greg Smith

A new facility for autonomous drone developer Flare Bright was unveiled by Greg Smith, MP for Buckingham at Westcott yesterday.

NP Aerospace awarded MoD VSCAPS contract

NP Aerospace has been awarded a contract under the UK MoD Vehicle Support Capital Spares Multi-Supplier Framework Agreement (VSCAPS).

The Air League celebrates UK aviation and aerospace excellence

The Air League has recognised a number of remarkable individual achievements that have made an outstanding contribution to British aviation and aerospace at its Annual Reception held earlier this month at the Terrace Pavilion, House

Inmarsat launches OneFi

Inmarsat today announced the launch of its innovative new OneFi customer experience platform for airlines.

Gatwick recruits equal number of male and female engineering apprentices

Gatwick Airport is proud to have recruited four new engineering apprentices for its 2021 cohort, with an equal split between males and females for the first time.

Airbus and partners target more energy efficient flights

Airbus, Air France and DSNA, the French Air Navigation Service Provider (ANSP), have begun working towards the development of 'most energy efficient flights', following their inaugural demonstration flight from Paris to Toulouse

ODU UK SK0902311221
See us at
RAF Museum BT