Babcock to dispose of aerial emergency services units

Aerospace, defence, and security giant Babcock has agreed to sell certain aerial emergency services businesses to funds managed by mid-market infrastructure investor Ancala Partners for €136.2m.

Babcock said on Tuesday that the disposed businesses provide aerial emergency medical, firefighting and search and rescue to customers services to communities in Italy, Spain, Portugal, Norway, Sweden and Finland.

The FTSE 250-listed firm will retain its aerial emergency services units in its core countries of the UK, France, Canada and Australia, where it also operates defence businesses.

Babcock added that the sale forms part of its portfolio alignment programme, designed to focus the group and reduce complexity. Proceeds from the transaction will be retained for general corporate purposes.

Chief executive David Lockwood said: "The agreement marks another significant step forward in our strategy to align our portfolio. I would like to thank colleagues for their commitment and hard work in providing vital services for their customers, not least through the pandemic, and I wish them and Ancala every success for the future."

As of 0825 BST, Babcock shares were up 0.94% at 322.80p.

Reporting by Iain Gilbert at Sharecast.com