com:20090918:RnsR2720Z
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RNS Number : 2720Z  
  
Dept for Business Innovation&Skills  
  
18 September 2009  
  
Uk Atomic Energy Authority announces sale of its commercial business, UKAEA 
Limited  
  
The UK Atomic Energy Authority today announced it has reached an agreement with 
Babcock International Group for the sale of 100% of its commercial arm, UKAEA 
Limited, for £50.0m.  
  
The sale follows the announcement of 30 March 2009 that UK Atomic Energy 
Authority was seeking a buyer for UKAEA Limited. The sale of the business will 
help to reinforce the UK's strong heritage in the nuclear industry and provide a 
platform for the further development of skills in this important marketplace.  
  
The transaction is expected to close by the end of 2009. The sale process 
follows a strategic review performed by the UK Atomic Energy Authority following 
passage of the Energy Act 2004.  
  
Business Secretary Peter Mandelson, said:  
  
"Today's announcement is good news for UKAEA Limited and its employees. The sale 
will allow the company, as part of Babcock International, to continue its 
development and take advantage of new opportunities in the nuclear industry. It 
also generates good value for the tax payer."  
  
Chairman of the UK Atomic Energy Authority, Lady Judge, said:   
  
"We are delighted to have agreed the sale of UKAEA Limited to Babcock 
International, which represents the culmination of the strategy initiated in 
2004, following the introduction of the Energy Act that year.  
  
"The new ownership structure will help give UKAEA Limited greater commercial 
focus on its operations, allowing it to capitalise on its core skills, strong 
track record and brand and I am confident that it will continue its growth in 
the UK and internationally under Babcock International's ownership."  
  
Notes to Editors  
  
1. The sale of UKAEA Ltd is the first such transaction carried out under the 
Government's Operational Efficiency Programme ("OEP"). This was launched last 
year and is being managed by the Shareholder Executive. OEP aims to ensure more 
efficient and commercial operation of assets held by the public sector, 
including certain businesses. The Shareholder Executive 
(http://www.shareholderexecutive.gov.uk)works with their Boards, employees and 
advisors to achieve these objectives, which in certain circumstances may lead to 
disposals.  
  
2. UKAEA Limited provides nuclear decommissioning, waste management and site 
environmental remediation services in the UK and overseas. It also manages the 
pension administration for a number of nuclear industry pension schemes.UKAEA 
Limited, as part of UK Atomic Energy Authority, has been an established part of 
the UK nuclear industry over the last fifty years. UKAEA Limited offers site 
management services at three Nuclear Decommissioning Authority sites and nuclear 
project management and consultancy services in the UK and international 
markets.  
  
3. UKAEA Limited's parent, the UK Atomic Energy Authority, continues to 
encompass fusion research for the UK, is one of the joint venture partners in 
the Harwell Science and Innovation Campus, provides IT and Telecommunications 
services to the group and is responsible for corporate governance. It is a 
Non-Departmental Public Body responsible to the UK Department for Business, 
Enterprise and Regulatory Reform.  
  
4. Babcock is a major supplier of nuclear engineering and support services in 
the UK. It provides engineering skills and services across a range of sectors 
and operates extensively in the UK, as well as in Africa, Canada and Australia.  
  
5. The purchase consideration includes net cash balances of £11.6m.  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
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