Babcock International acquires Brazil firm Conbras
UK engineering support company Babcock International Group has acquired Brazilian firm Conbras.
Conbras, a privately owned company which offers facilities management to private and public customers, was bought for a consideration of up to 75m Brazilian Real (R$).
The deal also includes a maximum of R$15m deferred consideration and earn out, subject to the achievement of financial performance targets.
Cobras has grown strongly over the past three years to report a revenue of R$131.5m and operating profit of R$9.6m for the year ended December 31st 2012.
Further growth is expected in 2013, benefiting from contracts won in the second half of 2012 and first half of 2013.
Babcock said it has identified Brazil as a key growth market suited to the development of a broader operation focusing on asset and infrastructure management as well as training for both public and private sectors.
Conbras will form part of the Infrastructure business unit within the Support Services division.
Peter Rogers, Chief Executive of Babcock, said: "The acquisition of Conbras will provide us with a secure and stable platform to enter the Brazilian market.
"Building on our existing skills, capabilities and reputation, we have already identified areas where we believe we can create long-term opportunities for Babcock in both the public and private sectors."
Shares were up 0.50% to 1,204p at 08:12 on Tuesday.