Babcock to offload Frazer-Nash Consultancy for GBP293mln

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Babcock International (LSE:BAB) Group PLC has agreed to sell its subsidiary Frazer-Nash Consultancy to KBR (NYSE:KBR) for GBP293mln.


Headquartered in the UK, the consultancy delivers engineering and technology solutions for national infrastructure, helping to provide assurance to operators and regulators from a network of nine UK and four Australian locations.


READ: Babcock’s new management have credible turnaround plan, says JP Morgan


It was acquired by Babcock in 2007, although it has mostly operated independently from it, and employs around 900 people.


In the year to 31 March, revenues were flat at GBP100mln while profit before tax came in at GBP13mln from GBP17mln the year before.


The deal is part of the FTSE 250 group’s disposal programme to raise at least GBP400mln over the next year.


“We are making real progress on our plan to streamline and focus the group on our key markets,” said Babcock’s chief executive David Lockwood.


“Divesting at least GBP400mln of businesses in our targeted disposals programme will enable us to reduce complexity and increase our focus as we return Babcock to strength.”

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