Babcock International has completed the sale of its power generation business to M Group Services for £50m.
The aerospace, defence and engineering firm sealed the disposal as part of efforts to streamline its operations.
The power business provides engineering services in the power generation and distribution sector and counts National Grid, and Scottish Power Energy Networks among its clients.
Babcock said the operation is part of its land arm and reported total revenues of £70m and profit before tax and interest of around £7m in the year to 31 March.
Chief executive David Lockwood said: “I’m delighted that we continue to make real strides in delivering our plan of streamlining the group - the business is a great fit for M Group Services, and I wish them every success as they continue to grow their operations.”
The sale forms part of his plan to simplify Babcock’s structure and improve the firm’s environmental, social and corporate governance.
As part of the strategy, the company sold Frazer-Nash Consultancy - which has contracts with the Ministry of Defence - to American engineering firm KBR in August for around £293m.
Shares in the company moved 0.6% higher to 320.6 pence in early trading on Friday.
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