Leading global helicopter company CHC has completed the £10 million (US$13.7 million) acquisition of Babcock International’s oil and gas aviation business which has 30 aircraft servicing the UK, Denmark and Australia.
CHC said Babcock’s operations in the UK, Australia and Denmark will be held separately and operate independently from CHC, while CHC seeks approval from the relevant competition authorities in the UK and Australia.
CHC chief executive David Balevic said: “This acquisition is a great success, opening new and broader opportunities for CHC both in existing markets like Australia and the North Sea, and in new areas. It further cements CHC’s position as one of the world’s leading providers of helicopter transportation to oil and gas, search and rescue and renewables customers.”
Babcock said the sale was part of its targeted asset disposal programme.
For the year ending 31 March 2021, Babcock's oil and gas aviation business had revenue of £154 million, a loss before tax of £2 million and underlying operating profit of £2 million.
As of 31 March 2021, it had gross assets of £256 million, net assets excluding cash of £21 million and net lease liabilities of £142 million.
On its website, Babcock says that every year its pilots transport around 260,000 men and women to oil and gas platforms in the North Sea.