Babcock completes sale of oil and gas aviation business

The business said the oil and gas aviation business had fetched £10 million in cash. It was sold to helicopter company CHC Group. Headquartered in Aberdeen, the unit has operations in the UK, Denmark and Australia.

It employs 500 people and operates around 30 aircraft, Babcock said. The unit's revenue reached £154m last year, and it made a pre-tax loss of £2m. Babcock is trying to raise at least £400m through selling off parts of the business, and it will use the cash to pay off debts.

Babcock said the oil and gas aviation business had fetched £10 million in cash (file image). Picture: contributed.

Babcock chief executive David Lockwood said: “This disposal is part of our plan to streamline and focus the group on our key markets. Divesting at least £400m of businesses will enable us to reduce complexity and increase our focus as we return Babcock to strength. The oil and gas aviation business has found a new home and we wish them all the best for the future.”

David Balevic, CHC president and chief executive, said: “This acquisition is a great success, opening new and broader opportunities for CHC both in existing markets like Australia and the North Sea, and in new areas.

“Enabling CHC to better serve the changing needs of both our new and existing customers, this acquisition illustrates our strategy to build on our strengths and positions us for growth. I am excited by the opportunity to bring together these two great aviation organisations. The acquisition, once implemented, will strengthen CHC’s ability to deliver outstanding levels of service and safety, and expand our global customer offering.”

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