M Group Services acquires Babcock’s power line business.
Expert infrastructure contractor M Group Services has acquired Babcock’s Overhead Line Power business for Â£ 50million. As a result of the takeover, the company will be rebranded to be part of Morrison Energy Services, serving alongside and enhancing current electricity, gas and green energy skills.
The divestiture becomes Babcock’s latest as it continues to work on a “recovery plan” to deal with financial losses suffered during the Covid period. It has already sold the maritime division Frazer-Nash Consultancy to an American engineering giant KBR for Â£ 293million and subsequently disposed of its stake in aviation services firm AirTanker Holdings Ltd for Â£ 126million. This acquisition brings to 15 the total number of strategic acquisitions made by M Group Services since December 2016.
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The overhead power transmission and distribution line.
In the latest accounts in March 2021, the power sector revealed total revenue of Â£ 70million and pre-tax profit of around Â£ 7million before allocated overheads. The overhead electricity distribution and transmission business includes National Grid, Western Power Distribution and Scottish Power Energy Networks among its customers. the Group M services Managing Director Jim Arnold said: âThere is a need for us to achieve sustainable growth both organically and through acquisitions and we are delighted to strategically enhance capabilities with this acquisition that provides the means accelerate our growth by creating a greater scope of electricity transmission services to customers. The culture, the potential and the reputation which become synonymous with this profession make it a perfect choice for us. We are pleased to welcome David Maddocks and the team to M Group Services.
Babcock Power Director David Maddocks added: âI am extremely happy to join M Group Services. Our high-level capability complements the current range of services and provides a solid platform to expand into a market that offers incredible opportunities for expansion.
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