Babcock sells emergency helicopter businesses
Babcock completes the sale of parts of its European emergency helicopter services to Ancala Partners for €136.2 million (US$145.1 million)
Proceeds from the sale, which encompasses various aerial firefighting, emergency medical and search and rescue services in Finland, Italy, Norway, Portugal, Spain and Sweden, will be used by the company to ‘reduce debt’. It follows the sale of part of Babcock’s civil training business to Inspirit Capital earlier this month.
The businesses encompassed by this sale reportedly employ over 2,400 people and operate a combined fleet of 232 aircraft stationed across Europe. The company will, however, retain its operations in France and the UK.
Babcock stated that the sale marks the completion of its ‘portfolio alignment’ program – an initiative designed to ‘reduce complexity’, ‘strengthen the balance sheet’ and ‘focus the Group on its chosen markets’. The company said the program, initially announced in April 2021, has generated gross proceeds of around £570 million (US$686.6 million), and transferred leases of around £340 million.
“We’ve done what we said we’d do at the start of our turnaround,” said Babcock CEO, David Lockwood. “Around two-thirds of the Group is now focused on defence, and we are well positioned for future growth opportunities in our core markets. The aviation emergency services and civil training businesses are both in good hands, and I wish their new owners every success in growing the businesses further.”
Babcock’s negotiations with fund manager Ancala were first reported by AirMed&Rescue in March 2022.