CHC acquires Babcock’s $10m oil and gas business
CHC Group has completed its acquisition of Babcock International’s $10m oil and gas business. Through the deal, CHC will increase its crew transportation capacity and expand its fleet by about 30 aircraft across the UK, Denmark and Australia.
David Balevic, CHC president and CEO, 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.”
Babcock generated a revenue of £154m for the year to March 31st. It had gross assets of £256m net assets, excluding cash of £21m and net lease liabilities of £142m, according to ShareCast.
Babcock is aiming to generate at least £400m from disposals.
The 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, the company said.
Balevic believes the acquisition will enable “CHC to better serve the changing needs of both our new and existing customers”. Parallels can be drawn between this offshore aviation deal and the one between Bristow and Era Helicopters, in June 2020.
That merger confirmed Bristow’s status as the world’s largest operator of Sikorsky S92, AW189, and AW139 helicopters with a total fleet of more than 300 aircraft. The merged company was said to maintain a strong balance sheet, supported by a large, combined cash balance of more than $250m.
Balevic continued: “This acquisition illustrates our strategy to build on our strengths and positions us for growth. I am excited by the opportunity to bring together these two great aviation organisations.”