Babcock to sell Frazer-Nash Consultancy to KBR for £293m
Babcock International Group, an aerospace, defense, and security company, has agreed to sell its fully-owned subsidiary Frazer-Nash Consultancy to KBR for £293 million.
Based in the UK, Frazer-Nash Consultancy provides engineering and technology solutions across a variety of critical national infrastructure.
Acquired by Babcock International in 2007, the systems, engineering, and technology consultancy employs nearly 900 people. Frazer-Nash Consultancy has a network of nine UK and four Australian locations.
According to Babcock International, the sale is part of its targeted disposal program, which aims to generate proceeds of at least £400 million in the coming 12 months.
The company will use proceeds from the sale of Frazer-Nash Consultancy for reducing net debt.
David Lockwood — Babcock International CEO 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.”
A part of Babcock International’s marine sector, Frazer-Nash Consultancy earned £100.5 million in revenues for the year ended 31 March 2021.
The closing of the deal is subject to approval from the Australian foreign investment authority.