Babcock in talks for £735 mn investment in helicopter maker Avincis
25 Nov 2013
Babcock, the engineering firm that runs dockyards for the Royal Navy, is in talks for making investments of £735 million for a minority stake in helicopter maker Avincis.
The aviation company, owner of the largest helicopter fleet in the world, draws a huge chunk of its revenue transporting crew to oil rigs.
Talks between the two firms are believed to be at an advanced stage.
Private equity firm KKR does not intend to lose control of Avincis, and while ruling out a sale of the entire business, is open to a sale of up to 49 per cent.
The firm, valued at around £1.5 billion, would be the engineering firm's first major investment since its acquisition of the VT group for £1.3 billion in 2010. An announcement is not expected immediately, and according to a statement by Babcock, it was in exclusive discussions regarding the establishment of a joint venture with respect to Avincis.