Yahoo Finance Babcock sells power business to M Group Services in £50m deal
Babcock International has completed the sale of its power generation business to M Group Services for £50 million.
The London-based aerospace, defence and engineering firm has sealed the disposal as part of efforts to streamline its operations.
The power business provides engineering services in the power generation and distribution sector and counts National Grid Scottish Power Energy Networks and Western Power Distribution among its clients.
Babcock said the operation is part of its Land arm and reported total revenues of £70 million and profit before tax and interest of around £7 million in the year to March 31.
Chief executive David Lockwood said: “I’m delighted that we continue to make real strides in delivering our plan of streamlining the group.
“The business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations.”
The sale forms part of Mr Lockwood’s plan to simplify Babcock’s structure and improve the firm’s environmental, social and corporate governance.
As part of the strategy, the company sold a consultancy which has contracts with the Ministry of Defence in August.
It pocketed around £293 million from the sale of the Frazer-Nash Consultancy to KBR, an American engineering giant.
Shares in the company moved 0.6% higher to 320.6p in early trading on Friday.
