Babcock sells electricity 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, defense and engineering company sealed the sale as part of efforts to streamline its operations.
The electricity business provides engineering services in the electricity generation and distribution sector and counts National Grid Scottish Power Energy Networks and Western Power Distribution among its customers.
Babcock said the operation was part of its land arm and reported total revenue of £70m and profit before tax and interest of around £7m in the year to 31 March.
Chief Executive David Lockwood said: “I am delighted that we continue to make real progress in delivering on our group rationalization plan.
“The business is a perfect fit for M Group Services, and I wish them every success as they continue to grow their operations.”
The sale is part of Mr Lockwood’s plan to simplify Babcock’s structure and improve the company’s environmental, social and corporate governance.
As part of this strategy, the company in August sold a consulting firm that has contracts with the Ministry of Defense.
He pocketed an estimated £293million from the sale of Frazer-Nash Consultancy to KBR, an American engineering giant.
Shares of the company rose 0.6% to 320.6p in early trading on Friday.