23 Jul 2013 07:00

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23 July 2013
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Babcock International Group PLC
Acquisition of Conbras
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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.
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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.Â
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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.Â
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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.Â
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Peter Rogers, Chief Executive of Babcock, commented:
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"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."
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Enquiries
Babcock International Group PLC 020 7355 5300
Bill Tame - Finance Director
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FTI Consulting 020 7269 7291
Andrew Lorenz
Nick Hasell
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