UK Atomic Energy Authority sells commercial business

The UK Atomic Energy Authority has announced it has reached an agreement with Babcock International Group for the sale of 100% of its commercial arm, UKAEA, for £50.0m.

The sale follows the announcement of 30 March 2009 that UK Atomic Energy Authority was seeking a buyer for UKAEA. The transaction is expected to close by the end of 2009.

Business secretary Peter Mandelson, said: "Today's announcement is good news for UKAEA and its employees. The sale will allow the company, as part of Babcock International, to continue its development and take advantage of new opportunities in the nuclear industry. It also generates good value for the tax payer."

Chairman of the UK Atomic Energy Authority, Lady Judge, said: "We are delighted to have agreed the sale of UKAEA to Babcock International, which represents the culmination of the strategy initiated in 2004, following the introduction of the Energy Act that year.

"The new ownership structure will help give UKAEA greater commercial focus on its operations, allowing it to capitalise on its core skills, strong track record and brand and I am confident that it will continue its growth in the UK and internationally under Babcock International's ownership."

The sale of UKAEA is the first such transaction carried out under the Government's Operational Efficiency Programme (OEP). This was launched last year and is being managed by the Shareholder Executive. OEP aims to ensure more efficient and commercial operation of assets held by the public sector, including certain businesses. The Shareholder Executive works with their boards, employees and advisors to achieve these objectives, which in certain circumstances may lead to disposals.