"The acquisition of Conbras will provide us with a secure and stable platform to enter the Brazilian market,” said chief executive Peter Rogers.
Babcock has identified Brazil as a key growth market suited to the development of a broader operation focusing on asset and infrastructure management as well as training for both public and private sectors.
Conbras operates in the facilities management sector, serving private and public customers across Brazil. Over the past three years it has grown to report revenue of R$131.5m and operating profit of R$9.6m for the year ended 31 December 2012. Further growth is expected in 2013, following contract wins in the last year.
“Building on our existing skills, capabilities and reputation, we have already identified areas where we believe we can create long-term opportunities for Babcock in both the public and private sectors," said Rogers.
Conbras will form part of Babcock’s infrastructure business unit within the support services division. The current CEO and senior management team will remain with the business to support its development.
The transaction value of up to R75m includes a deferred amount of a maximum of R$15m, subject to the achievement of financial performance targets.