com:20090918:RnsR2847Z
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RNS Number : 2847Z  
  
Babcock International Group PLC  
  
18 September 2009  
  
18 September 2009       
  
Babcock International Group PLC  
  
Acquisition of UKAEA Limited  
  
Class 3 Transaction  
  
Babcock International Group PLC (Babcock), the engineering support services 
company, today announces it has agreed to acquire UKAEA Ltd (UKAEA) from the 
United Kingdom Atomic Energy Authority for a cash consideration of £50 million. 
UKAEA will have cash balances of approximately £12 million on completion.  The 
transaction will complete when customary approvals are obtained.  
  
The UKAEA has a world class reputation in the nuclear market place with over 50 
years' experience in nuclear site management, operations and decommissioning and 
established advisory roles with a number of government organisations in both the 
UK and overseas. It provides a wide range of services including programme 
management, decommissioning, waste management, environmental services and 
technical consulting.   
  
Babcock already has one of the largest specialist nuclear services resources in 
the UK with well established positions in both the civil and military nuclear 
operational support and decommissioning markets. This acquisition provides 
Babcock with its first operational Tier 1 position in the civil nuclear market 
and a direct relationship with the Nuclear Decommissioning Authority, 
complementing its existing Tier 1 position in the military nuclear market.    
  
The acquisition represents a significant extension to Babcock's existing nuclear 
skills by bringing proven capabilities in waste categorisation, decommissioning 
of high hazard facilities, encapsulation and storage of hazardous materials and 
transportation of waste, which are applicable to both the civil and military 
sectors.    
  
In the financial year ended 31March 2009, UKAEA generated revenue of £32 
million. The financial results of UKAEA will be reported as part of the Nuclear 
division.    
  
Peter Rogers, Chief Executive of Babcock said:   
  
"We are delighted to be able to announce the acquisition of UKAEA. The high 
level of skills and expertise in UKAEA will further accelerate the growth of our 
Nuclear business. Babcock has an excellent track record of integrating 
acquisitions in the nuclear spectrum to deliver high levels of shareholder 
value. We are confident that with the UKAEA we will continue to build on this 
success."  
  
Enquiries:   
  
 
  Babcock International Group PLC                   020 7355 5300  
  Peter Rogers         Chief Executive                             
  Bill Tame            Finance Director                            
  Terri Wright         Head of Investor Relations                  
                                                                   
  Financial Dynamics                                020 7269 7291  
  Andrew Lorenz                                                    
  Sophie Kernon                                                    
  
  
Notes to Editors   
  
Babcock International Group PLC  
  
 
 * Babcock International Group PLC is a FTSE 250 company with revenue of £1.9bn 
and profit before tax of £120.9m in 2008/09.   
 * In 2008/09 BNS Nuclear Services, Babcock's Nuclear division reported revenue 
of £106.7m, operating profit of £13.0m with an operating return on revenue of 
12.2%.  
The division has been formed from the acquisitions of Alstec in 2006, 
International Nuclear Solutions and Strachan & Henshaw both completed in 2008.   
 * Babcock has considerable experience of operating under the strict conditions 
required by the nuclear regulator.   
In the military nuclear market, Babcock is a Tier 1 contractor and Nuclear Site 
Licensee at Devonport and Rosyth dockyards and HMNB Clyde (Faslane). 
At Devonport Babcock owns and operates the UK's only nuclear refuelling 
facilities for its nuclear submarine fleet, currently undergoing £150m of 
upgrade works to accommodate defueling of out of service submarines. 
At Rosyth, Babcock has been responsible for the clean up of site previously used 
for refuelling the submarine fleet.   
In the civil nuclear market, BNS Nuclear Services is now one of the major 
suppliers of nuclear engineering and support services. The division supports the 
UK's operational AGR fleet, providing outage and maintenance support around fuel 
route systems.   
Babcock also provides design and engineering support for decommissioning work 
being undertaken at Sellafield, Dounreay and as part of the Chapelcross/Calder 
Hall decommissioning programme.   
  
UKAEA Ltd  
  
 
 * UKAEA Ltd is based in Harwell, with offices in Dounreay, Winfrith, Windscale 
and Warrington. 
 * It has three site management contracts at Dounreay, Harwell/Winfrith and 
Windscale.   
 * It currently employs around 230 people engaged in site management, project 
and consulting work  
  
 
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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