Babcock sells off helicopter business for £10m
Babcock, the British defence and engineering business, has sold off its helicopter operations branch for £10m after purchasing it for £1.6bn in 2014.
The Group’s Aviation sector, which is being purchased by CHC group, provides offshore oil and gas crew transportation services in the UK, Denmark and Australia.
Babcock said that its divestment from oil and gas is part of a targeted disposal programme which will enable the company to “reduce complexity” and aims to generate proceeds of £400million.
The company, which is headquartered in Aberdeen and employs over 500 people, operates around 30 aircraft.
Babcock first announced the deal in March 2021 and said the company was expecting to complete the deal by the end of June. However, negotiations hit a snag when the Competition and Markets Authority issued an initial enforcement order, halting progress on the merger while it decided whether to launch an investigation.
While the CMA process is still ongoing, CHC said the Babcock business will be held “separately and operate independently” while it seeks approval from competition authorities in the UK and Australia.
Babcock CEO David Lockwood said: “This disposal is part of our plan to streamline and focus the group on our key markets.
“The oil and gas aviation business has found a new home and we wish them all the best for the future,” he added.
The warm comments come in spite of the company’s former boss calling Babcock’s aviation division “a nightmare” and claiming he “should be getting a medal for getting us out of it,” as he announced the company would be winding down operations.
For the year ending 31 March 2021, the division had revenue of £154 million and a loss before tax of £2 million.
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