Babcock International Group has entered into an agreement with funds managed by Ancala Partners, a mid-market infrastructure investor, for the sale of certain of its aerial emergency services businesses for a gross cash consideration of around $138.4 million.

This business provides aerial emergency medical services, firefighting and search and rescue to customers and communities in Italy, Spain, Portugal, Norway, Sweden and Finland. They employ over 2,400 highly trained personnel and operate a fleet of 232 aircraft across 164 locations in the six countries. Babcock will retain its aerial emergency services businesses in its focus countries of the UK, France, Canada and Australia, where the group also operates defence businesses.

The sale forms part of Babcock's portfolio alignment programme, designed to focus the group and reduce complexity. It follows the sale of its Aberdeen-headquartered oil and gas aviation business to CHC Group for $12 million in September 2021. This business provided offshore oil and gas crew transportation services in the UK, Denmark and Australia. Proceeds from the latest transaction will be retained for general corporate purposes.

CEO David Lockwood says: “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.”

The deal is expected to complete by the end of the calendar year, subject to the satisfaction of the relevant conditions.