Acquisition

13th Jun 2006 07:01

Babcock International Group PLC13 June 2006 13 June 2006 BABCOCK ACQUIRES SOUTH AFRICAN HIGH VOLTAGE TRANSMISSION BUSINESS In line with its strategy of developing businesses in South Africa, BabcockInternational Group announces the acquisition, on a debt free basis, of the highvoltage power lines and mobile telecoms business of ABB South Africa (Pty)(Powerlines), for a consideration of £4.5 million, funded from existing bankingfacilities. The Powerlines division reported turnover of £13.5 million in the year endedDecember 2005 and profit before interest and tax was £1.0 million. The businesshas a total order book in excess of £5.0 million and gross assets are £7.0million. Powerlines operates in two markets. These are high voltage transmission linesand mobile telecoms infrastructure. The business includes a tower and fittingsmanufacturing facility. These businesses will complement Babcock's powertransmission and telecoms business in the UK and a combination of the skills andtrack record of EVE with those in South Africa will create major opportunitiesin rapidly growing infrastructure markets in Southern Africa. Peter Rogers, Chief Executive of Babcock, commented: "We are delighted with this acquisition which extends our business with ESKOM inSouth Africa and mirrors the skills and abilities of EVE in the UK. "The recent announcements in South Africa of substantial electricity generationinfrastructure build offer excellent opportunities for growth in the powerlinessector." - Ends - Enquiries: Babcock International Group PLC Tel: 020 7291 5000Peter Rogers (Chief Executive)Bill Tame (Finance Director) Financial Dynamics Tel: 020 7269 7121Susanne Walker Notes to editors: About Babcock International Group PLC Babcock International Group PLC is an asset management business. We managefixed infrastructure and mobile assets for a range of blue chip customers.Babcock integrates labour, technical capabilities, systems and supply chainpartners to meet the outsourcing needs of customers for 'mission-critical'capabilities. In the year to 31 March 2006 sales from continuing business were £837 million. The Group operates across five core business segments: Defence Services, supplying facilities management, equipment support andtraining services to the armed forces. Technical Services, providing engineering and logistical support to both thedefence and civil sectors in the UK. Engineering and Plant Services, supplying design, installation and maintenancesupport to the energy sector in Africa and the US. It also holds the Volvofranchise for construction equipment in Southern Africa. Rail, providing design, renewal and installation services for the UK railinfrastructure. Networks, supporting the design, maintenance and renewal of power transmissionand cellular telecommunications networks in the UK. Babcock's head office is in London and the Company's shares are quoted on theLondon Stock Exchange in the support services sector (EPIC: BAB). For furtherinformation, please visit Babcock's website at www.Babcock.co.uk. This information is provided by RNS The company news service from the London Stock Exchange

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