Infrastructure expert contractor M Group Services has acquired Babcock’s Overhead Line Power venture for £50m. Due to the takeover, the venture will be rebranded to become part of the Morrison Energy Services, sitting alongside and enhancing present electricity, gas and green energy skills.
The disposal becomes the latest made by Babcock as it pursues work on a “turnaround plan” to tackle losses in finance made during the Covid time. It has earlier sold marine division venture Frazer-Nash Consultancy to an American engineering giant KBR for £293m and later offloaded its stake in aviation services company AirTanker Holdings Ltd for £126m. The acquisition makes the total number of strategic acquisitions made by M Group Services to 15 since December 2016.
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The overhead Line Power transmission and distribution.
In latest accounts to March 2021, the power business revealed £70m total revenues and around £7m pre-tax profit before allocated overheads. The overhead line electric distribution and transmission business counts among its clients as well as National Grid, Western Power Distribution and Scottish Power Energy Networks. The M Group Services Chief Executive, Jim Arnold stated: “It is necessary for us to come up with a sustainable growth both organically and through acquisitions and we are excited to strategically enhance the capabilities with this acquisition which offers the means to accelerate our growth by creating a greater breadth of electricity transmission services to the clients. The culture, potentialities and reputation that is becoming synonymous with this occupation make it a perfect fit for us. We are happy to welcome David Maddocks and the team to M Group Services.”
Director of Babcock Power, David Maddocks, added: “I am extremely happy to be joining M Group Services. Our high up line capability compliments the present range of services and offers a solid platform to grow in a market that has amazing opportunity for expansion.”
