Another key defence business was sold off yesterday as Babcock International offloaded a consultancy that does work on nuclear submarines and weaponry for Royal Navy warships.
The defence giant is selling Frazer-Nash Consultancy to American aerospace group KBR in a deal worth nearly £300m.
The deal will raise concerns that UK industry is rapidly losing companies and assets after the Covid crisis triggered a downturn in the aerospace sector.
Sell-off: The defence giant is selling Frazer-Nash Consultancy to American aerospace group KBR in a deal worth nearly £300m
It comes amid a wave of bids for key UK defence assets, with Meggitt and Ultra both being circled by American firms. The Government has been encouraged to step in to block the deals on national security grounds.
Frazer-Nash employs 900 people and has operations in Plymouth, Bristol and Glasgow. Its sale surprised some as it sits in the marine division of Babcock, which builds warships for the Royal Navy, including new aircraft carriers and Type 31 frigates, and which services the submarine fleet.
Frazer-Nash is also a lucrative double-digit margin consultancy. KBR will be getting a business that before the pandemic was making annual profits of £17m on revenues of £101m. The sale means Britain’s second-largest defence contractor is steaming ahead with turnaround plans unveiled just two weeks ago.
Chief executive David Lockwood, who joined last year, said he was aiming to raise £400m from selling off various divisions that were less connected to its core work. The FTSE250 company is a key contractor for the Ministry of Defence and is tasked with maintaining the UK’s fleet of nuclear submarines, operating the Devonport naval dock at Plymouth and training Royal Air Force pilots.
The sale of Frazer-Nash Consultancy for £293m means Babcock has secured most of money it needs to meet its goal.
#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }
