Aerospace and defence company Babcock has entered into a conditional agreement to sell its oil and gas aviation business to helicopter services provider CHC Group.
The Aberdeen-headquartered division provides offshore oil and gas crews with transportation services in the UK, Denmark and Australia.
It employs more than 500 people and operates around 30 aircraft across its three locations.
The deal is expected to complete in the second calendar quarter of 2021, subject to the satisfaction of the relevant third party conditions.
It is intended that CHC will seek clearance for the transaction from antitrust authorities in the UK and Australia, but completion is not conditional upon such clearances being received.
Babcock stated that further information will be provided upon completion of the deal, but no more details were given.
In January, Babcock stated that its third quarter trading saw a continuation of civil aviation weakness due to the negative impacts of Covid-19.
Underlying revenue in the nine months in the year to date was just under £3.4bn, down 3% year-on-year. Operating profit fell by more than a third to £202m.
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