Babcock International Group PLC
13 June 2006
13 June 2006
BABCOCK ACQUIRES
SOUTH AFRICAN HIGH VOLTAGE TRANSMISSION BUSINESS
In line with its strategy of developing businesses in South Africa, Babcock
International Group announces the acquisition, on a debt free basis, of the high
voltage power lines and mobile telecoms business of ABB South Africa (Pty)
(Powerlines), for a consideration of £4.5 million, funded from existing banking
facilities.
The Powerlines division reported turnover of £13.5 million in the year ended
December 2005 and profit before interest and tax was £1.0 million. The business
has a total order book in excess of £5.0 million and gross assets are £7.0
million.
Powerlines operates in two markets. These are high voltage transmission lines
and mobile telecoms infrastructure. The business includes a tower and fittings
manufacturing facility. These businesses will complement Babcock's power
transmission and telecoms business in the UK and a combination of the skills and
track record of EVE with those in South Africa will create major opportunities
in rapidly growing infrastructure markets in Southern Africa.
Peter Rogers, Chief Executive of Babcock, commented:
'We are delighted with this acquisition which extends our business with ESKOM in
South Africa and mirrors the skills and abilities of EVE in the UK.
'The recent announcements in South Africa of substantial electricity generation
infrastructure build offer excellent opportunities for growth in the powerlines
sector.'
- Ends -
Enquiries:
Babcock International Group PLC Tel: 020 7291 5000
Peter Rogers (Chief Executive)
Bill Tame (Finance Director)
Financial Dynamics Tel: 020 7269 7121
Susanne Walker
Notes to editors:
About Babcock International Group PLC
Babcock International Group PLC is an asset management business. We manage
fixed infrastructure and mobile assets for a range of blue chip customers.
Babcock integrates labour, technical capabilities, systems and supply chain
partners to meet the outsourcing needs of customers for 'mission-critical'
capabilities.
In the year to 31 March 2006 sales from continuing business were £837 million.
The Group operates across five core business segments:
Defence Services, supplying facilities management, equipment support and
training services to the armed forces.
Technical Services, providing engineering and logistical support to both the
defence and civil sectors in the UK.
Engineering and Plant Services, supplying design, installation and maintenance
support to the energy sector in Africa and the US. It also holds the Volvo
franchise for construction equipment in Southern Africa.
Rail, providing design, renewal and installation services for the UK rail
infrastructure.
Networks, supporting the design, maintenance and renewal of power transmission
and cellular telecommunications networks in the UK.
Babcock's head office is in London and the Company's shares are quoted on the
London Stock Exchange in the support services sector (EPIC: BAB). For further
information, please visit Babcock's website at www.Babcock.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
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