Partner Article

Babcock makes £23m acquisition

Engineering support firm Babcock International Group has secured a £23m deal to acquire LGE Process from The Weir Group.

LGE Process, which is based in Edinburgh, makes plants to process and store liquid gases for both the marine and onshore liquid gas sectors.

The acquired company will be absorbed into Babcock’s Design Services, and will become part of the Marine and Technology Division.

Babcock is one of the top suppliers in support services to the Ministry of Defence and the Royal Navy.

By the end of December 2012, LGE reported a gross revenue of £26.3m, and operating profits of £3m, while in November Babcock announced 12% operating profit rises to £174m in its half year results.

Commenting on the deal, which was completed on 28th December, Peter Rogers, chief executive, said: “The acquisition of LGE and its combination with our existing expertise in Design Services will create a strong business, well positioned to build on its current positions and develop into new commercial marine markets, particularly within the oil and gas market.”

The international company, based in the UK, currently employs over 25,000 skilled staff and has made 11 acquisitions in the last 12 years in a number of diverse areas including defence, rail and the marine sector.

This was posted in Bdaily's Members' News section by Miranda Dobson .