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LONDON, March 27 (Reuters) - Engineering contractor Babcock said on Thursday it had agreed to acquire helicopter transport services firm Avincis for 920 million pounds, funding the long-expected deal through a 1.1 billion pounds rights issue.
Babcock will also take on the net debt of Avincis of 705 million pounds.
“The proposed acquisition of Avincis meets Babcock’s strategic objectives as it brings into the Babcock Group a market-leading business, delivering mission critical services and complex engineering support to blue-chip customers in multiple geographies,” said Babcock CEO Peter Rogers.
“Avincis already has a strong growth platform and its combination with Babcock will generate even greater expansion opportunities and value creation for Babcock’s shareholders,” he added.
London-headquartered Avincis runs a fleet of 356 aircraft, of which 196 are owned by the company, and operates in 10 countries. It has about 3,000 employees.
Avincis was owned World Helicopters, a portfolio company of investment funds affiliated with Investindustrial and Kohlberg Kravis Roberts. ($1 = 0.6037 British Pounds) (Reporting by Li-mei Hoang; editing by Kate Holton)