Babcock to acquire UKAEA Ltd for £50m
Engineering support services major swoops to acquire UKAEA Ltd from the UK Atomic Energy Authority for £50 million.
London - Engineering services company Babcock International Group PLC is to acquire UKAEA Ltd from the UK Atomic Energy Authority for £50 million. UKAEA will have cash balances of approximately £12 million on completion of the deal, which is subject to standard approvals, said a 21 Sept Babcock statement.
The UKAEA Ltd has over 50 years’ experience in nuclear site management, operations and decommissioning and established advisory roles with a number of government organisations in both the UK and overseas. It provides a wide range of services including programme management, decommissioning, waste management, environmental services and technical consulting.
Babcock claims to already have one of the largest specialist nuclear services resources in the UK, with strong positions in both the civil and military nuclear operational support and decommissioning markets.
UKAEA Ltd, said Babcock, provides it with its first operational Tier 1 position in the civil nuclear market and a direct relationship with the Nuclear Decommissioning Authority, complementing its existing Tier 1 position in the military nuclear market. In the financial year ended 31March 2009, UKAEA Ltd generated revenue of £32 million.
The acquisition also extends Babcock’s existing nuclear skills by bringing proven capabilities in waste categorisation, decommissioning of high hazard facilities, encapsulation and storage of hazardous materials and transportation of waste, which are applicable to both the civil and military sectors.
"The high level of skills and expertise in UKAEA will further accelerate the growth of our Nuclear business," said Peter Rogers, chief executive of Babcock. "Babcock has an excellent track record of integrating acquisitions in the nuclear spectrum to deliver high levels of shareholder value. We are confident that with the UKAEA we will continue to build on this success.”