Babcock to promote Frazer-Nash Consultancy to KBR
August 16, 2021
from Marc Selinger
KBR is based in Houston, Texas. (KBR)
British Babcock International Group has agreed to sell its Frazer-Nash consultancy to US engineering company KBR for GBP 293 million (US $ 405.1 million) in order to reduce its debt, Babcock announced on August 13 .
KBR said the acquisition of the Babcock subsidiary will expand its international consulting capabilities. Frazer-Nash serves government and industrial customers in the defense and other sectors and operates primarily in the UK and Australia. His defense engineering expertise includes areas such as air, land and marine systems; C4ISTAR; Space defense; and weapons.
“Frazer-Nash complements KBR’s global priorities very much with minimal overlap due to its geographic presence,” said KBR.
Frazer-Nash, based in Dorking, Surrey, in the south-east of England, has been operating largely independently since its takeover by Babcock in 2007, according to Babcock. The company employs 900 people and has nine locations in the UK and four in Australia. For the year ended March 31, 2021, the company had sales of £ 100.5 million and earnings before interest and taxes of £ 13.5 million.
KBR plans to pay for the acquisition with approximately $ 175 million in cash and $ 225 million in debt. The transaction is expected to close in the third or fourth quarter of 2021 upon receipt of regulatory approval. Frazer-Nash becomes part of KBR’s Government Solutions segment.
The announcement came four months after Babcock announced that it would divest several non-core businesses over the next year in order to generate net sales of at least £ 400 million and strengthen its balance sheet. The company had already agreed to sell its oil and gas aviation business to the offshore helicopter operator CHC Group.
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The British Babcock International Group has agreed to extend its Frazer-Nash advice to other engines …
