Babcock sells electricity business to M Group Services for £ 50million deal

Babcock International has completed the sale of its power generation business to M Group Services for £ 50 million.

he London-based aerospace, defense and engineering firm sealed the divestiture as part of efforts to streamline operations.

The power business provides engineering services to the power generation and distribution industry and counts National Grid, Scottish Power Energy Networks and Western Power Distribution among its customers.

Babcock said the transaction was part of its Land branch and reported total income of £ 70million and profit before tax and interest of around £ 7million as of March 31.

Managing Director David Lockwood said: “I am delighted that we continue to make real progress in delivering on our plan to rationalize the group.

“The company 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, in August the company sold a consulting firm that has contracts with the Defense Ministry.

He pocketed around £ 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.