Last checked at 23 Jul 2013 07:00
23 July 2013
Babcock International Group PLC
Acquisition of Conbras
Babcock International Group PLC (Babcock, the Group), the UK's leading engineering support services company, announces that it has acquired Conbras, a privately owned Brazilian company, for a consideration of up to R$75 million (c £22 million), including a maximum of R$15 million deferred consideration and earn out, subject to the achievement of financial performance targets. The acquisition will complete immediately.
Conbras operates in the facilities management sector, serving private and public customers across Brazil. Over the past three years it has grown strongly to report revenue of R$131.5 million and operating profit of R$9.6 million for the year ended 31 December 2012. Further growth is expected in 2013, benefiting from contracts won in H2 2012 and H1 2013.
Babcock has identified Brazil as a key growth market suited to the development of a broader operation focusing on asset and infrastructure management as well as training for both public and private sectors. The acquisition of Conbras will provide a credible operating presence in this market from which to develop this strategy.
Conbras will form part of the Infrastructure business unit within the Support Services division. The current CEO and senior management team will remain with the business to support its development.
Peter Rogers, Chief Executive of Babcock, commented:
"The acquisition of Conbras will provide us with a secure and stable platform to enter the Brazilian market. Building on our existing skills, capabilities and reputation, we have already identified areas where we believe we can create long-term opportunities for Babcock in both the public and private sectors."
Enquiries
Babcock International Group PLC 020 7355 5300
Bill Tame - Finance Director
FTI Consulting 020 7269 7291
Andrew Lorenz
Nick Hasell