Babcock completes sale of VT Services

11th Jul 2012 11:50

Babcock, the FTSE-100 engineering support firm, has completed the previously announced sale of VT Services, the group's US defence business to VT Holdings, a special purpose vehicle. The disposal was made for a cash consideration of $98.75m (around £61m). VT Services, an engineering support and facilities management business, was acquired as part of Babcock's acquisition of VT Group in 2010, but following a strategic review it was decided the US defence operations did not meet Babcock's strategic objectives. The net proceeds of the disposal will be used to reduce the group's total net debt position.Babcock's share price fell 1.59% to 868.50p by 12:03.NR