The UK Atomic Energy Authority has reached an agreement with Babcock International Group for the sale of 100% of its commercial arm, UKAEA Limited, for GBP50 million ($82 million).
UKAEA will have cash balances of approximately £12 million on completion. In the financial year ended 31March 2009, UKAEA generated revenue of £32 million. The transaction will complete when customary approvals are obtained, according to Babcock.
Babcock said that the acquisition provides it with its first operational Tier 1 position in the civil nuclear market and a direct relationship with the Nuclear Decommissioning Authority, complementing its existing Tier 1 position in the military nuclear market. The acquisition represents a significant extension to Babcock’s existing nuclear skills by bringing proven capabilities in waste categorisation, decommissioning of high hazard facilities, encapsulation and storage of hazardous materials and transportation of waste, which are applicable to both the civil and military sectors.
The sale follows the announcement of 30 March 2009 that UK Atomic Energy Authority was seeking a buyer for UKAEA Limited. The transaction is expected to close by the end of 2009. The sale process follows a strategic review performed by the UK Atomic Energy Authority following passage of the Energy Act 2004.
Chairman of the UK Atomic Energy Authority, Lady Judge, said: “The new ownership structure will help give UKAEA Limited greater commercial focus on its operations, allowing it to capitalise on its core skills, strong track record and brand and I am confident that it will continue its growth in the UK and internationally under Babcock International’s ownership.”
UKAEA Limited’s parent, the UK Atomic Energy Authority, chaired by Lady Barbara Judge, continues to encompass fusion research for the UK, is one of the joint venture partners in the Harwell Science and Innovation Campus, provides IT and Telecommunications services to the group and is responsible for corporate governance. It is a Non- Departmental Public Body responsible to the UK Department for Business, Enterprise and Regulatory Reform.
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