Balfour Beatty sells DML for £86m

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Balfour Beatty announced today that it has agreed to sell its 24.5% interest in Devonport Management (DML) to Babcock International for approximately £86m in cash.

announced today that it has agreed to sell its 24.5% interest in

(DML) to

(Babcock) for approximately £86m in cash. The disposal will lead to profits of approximately £50m in Balfour Beatty’s 2007 accounts.

DML was established in 1987 to run Devonport Royal Dockyard, which it then acquired in 1997. It offers design, build and support solutions across the defence and commercial sectors, including nuclear submarine refit, refuelling and maintenance.

‘Devonport Management has been a very good investment for Balfour Beatty and we are pleased to have played a part in the success of the enterprise,’ said Balfour Beatty Chief Executive, Ian Tyler.

‘However, long-term involvement in DML is not core to our strategy and a sale on the terms agreed represents excellent value for our shareholders. This sale places the combined Babcock and DML businesses in a primary position to achieve consolidation of UK submarine assets,’ added Tyler.

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