UK Government contractor Babcock is reportedly in talks to sell its emergency aviation services as part of its disposal programme.
The group is expected to sell the division to infrastructure investment manager Ancala Partners for around £100m, Sky News broke the news today.
The UK Air Ambulance fleet is part of Babcock’s division but it is still unclear whether it would be part of the deal.
Following the disastrous impact of the Covid-19 pandemic on the global economy, Babcock decided to streamline operations by selling those more burdensome divisions, City A.M. reported.
The engineering started in September with the £315m sale of its RAF refuelling business and then went on to offload its engineering subsidiary Frazer-Nash Consultancy to infrastructure rival KBR for £293m.
In December Babcock announced it had finalised the sale of its energy business for £50m to Morrison Energy Services, while two months later offloaded its 15.4 per cent stake in air transport firm AirTanker for £95m.
The group was forced to adopt a stricter after it said in February it was expecting to post a loss this financial year following supply chain issues and skyrocketing inflation rates.
Babcock said additional pensions contributions, restructuring costs, IT upgrades and investment in new facilities were responsible for the losses.