KBR, Inc. (NYSE:KBR) agreed to acquire Frazer-Nash Consultancy Ltd. from Babcock International Group PLC (LSE:BAB) for £290 million on August 13, 2021. The total consideration will be paid in cash (implying an enterprise value of £285 million on a cash free/debt free basis). KBR expects to fund the purchase price with approximately £126.429 million of international cash on hand and £162.551 million of debt.

Frazer-Nash will become part of KBR's Government Solutions segment. For the year ended March 31, 2021, Frazer-Nash reported total revenues of £100.5 million, profit before interest and tax of £13.5 million, As of 31 March 2021 gross assets were £79.9 million. The transaction is subject to approval by the Australian foreign investment authority.

The transaction is subject to approval of certain regulatory approvals and customary closing conditions. The transaction has been unanimously approved by the KBR board of directors. The transaction is expected to close in the third or fourth quarter of 2021.

Babcock International will use proceeds from this transaction to reduce net debt. Aaron Shute, Karen Davies, Stuart Dullard, Neil Cuninghame, Melissa Fraser, Tim Gummer, Chris Bates, John Gordon and Nicholas Stretch of Ashurst acted as legal advisor to Babcock International Group. Hogan Lovells acted as legal advisor to KBR,Inc.