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CHC LLC purchases Babcock

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CHC LLC purchases Babcock

Old 22nd Feb 2021, 18:56
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Post CHC LLC purchases Babcock

Heard from couple of reliable sources that Babock have purchased CHC in the UK. Nothing official out there though,
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Old 22nd Feb 2021, 19:30
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They really are going after the 'start with a large fortune' motto...
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Old 23rd Feb 2021, 04:09
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What happened to getting out of oil and gas?
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Old 23rd Feb 2021, 05:55
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Could well be positioning for UKSAR2G bid
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Old 23rd Feb 2021, 09:33
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Originally Posted by [email protected] View Post
Could well be positioning for UKSAR2G bid
Why would you buy a company that's only bidding but hasn't actually won anything yet? They'd be better off buying CHC Norway, but they didn't and bailed out completely from Norway. This rumour makes no sense whatsoever, especially not considering Babcock's multiple negative statements regarding offshore.

Besides, as far as I know, CHC UK isn't a seperate business unit, but part of a larger European business unit. They'd have to break that up first before they could sell the UK. But who knows, maybe Brexit more or less done this for them already.. Anything goes afterall in this dog eat dog world of O&G. Time will tell if this crazy rumour is true but I find it rather unlikely.

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Old 23rd Feb 2021, 09:53
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Besides, as far as I know, CHC UK isn't a seperate business unit, but part of a larger European business unit
Well it will be a stand alone AOC, and CHC Scotia LTD is a distinct UK Legal entity.
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Old 23rd Feb 2021, 12:50
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Why would CHC sell the only part of their operation which generates a significant amount of cash flow? Much of what CHCUK makes is syphoned off to pay for “Corporate”. CHCUK will never make a taxable profit, “Corporate” will make sure of that.
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Old 23rd Feb 2021, 14:31
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Originally Posted by roundwego View Post
Why would CHC sell the only part of their operation which generates a significant amount of cash flow? Much of what CHCUK makes is syphoned off to pay for “Corporate”. CHCUK will never make a taxable profit, “Corporate” will make sure of that.
Not the only one to do that...
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Old 23rd Feb 2021, 15:00
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Originally Posted by [email protected] View Post
Could well be positioning for UKSAR2G bid
Certainly Babcock is a device for relieving government of their money and UK SAR has been shown to be a reliable revenue source for Bristow through hard times in other quarters. However, both Babcock and CHC are already members of 'the usual suspects' having both done some SAR in the UK SRR. We also live in an age where 'parent company guarantee' is proven to be not worth the paper it's not written on, so sheer size doesn't cut it. I shall be interested to see what this turns into.
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Old 23rd Feb 2021, 15:15
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Roundwego - CHC UK would be sold because the investors have had enough of pouring money into the overall entity and want some of their money back. If they would rather sell off the money making bit and take that cash then shut down the rest of the loss making operations, isn't that better for them? No one will pay for a major loss making business. People will pay for a profitable one. I heard the story has legs from my sources.
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Old 23rd Feb 2021, 15:46
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Originally Posted by nowherespecial View Post
Roundwego - CHC UK would be sold because the investors have had enough of pouring money into the overall entity and want some of their money back. If they would rather sell off the money making bit and take that cash then shut down the rest of the loss making operations, isn't that better for them? No one will pay for a major loss making business. People will pay for a profitable one. I heard the story has legs from my sources.
Which sources and where? Pilots? Engineers? Or actual managers/shareholders involved in either Babcock or CHC, cause otherwise all these "sources" don't really hold any credit with all due respect. If all these "sources" were correct, CHC'd be merged with Bristow for 1,5 years now...


Last edited by SNI; 23rd Feb 2021 at 16:06.
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Old 23rd Feb 2021, 15:49
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BRS / CHC Merger

I thought CHC had already merged.


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Old 24th Feb 2021, 04:52
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SNI, it's not pilots or engineers. My sources are solid but there is a lot more complexity than a simple buy/ sell transaction.
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Old 24th Feb 2021, 07:38
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Originally Posted by nowherespecial View Post
SNI, it's not pilots or engineers. My sources are solid but there is a lot more complexity than a simple buy/ sell transaction.
Those are some serious sources then very close to the fire... Either that or the top managers and anyone below are very good at portraying a different picture in recent briefings and communications in both CHC and Babcock. There's zero rumours or whistles on the ground here in the UK with regards to a Babcock take over of CHC UK. You and Kiwi are the only ones in the know apparently...
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Old 24th Feb 2021, 08:13
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Originally Posted by KiwiNedNZ View Post
Heard from couple of reliable sources that Babock have purchased CHC in the UK. Nothing official out there though,
Ned you are very well connected in the industry, would you care to elaborate.
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Old 24th Feb 2021, 09:10
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Not a lot of this makes much sense. If anything, I would think it would be the other way where CHC Group would buy Babcock MCS U.K especially given Babcock’s statements about getting out of the market last year. Does the rumour stem from a merger or specifically about Babcock purchasing CHC Scotia rather than CHC Group purchasing Babcock MCS? People need to be careful with what they are throwing out there.

For me, why would CHC Global allow that to happen? CHC Scotia works within the CHC EMEA region under Mark Abbey who has done a lot of work recently (and still doing) to align the regions into a one CHC.

So if CHC Scotia amalgamates with Babcock MCS what happens to CHC Norway, Netherlands, Brazil, Australia etc? They remain
as CHC Helicopter under a global branch?

A lot of the U.K. staff support the rest of CHC operations outwith Scotia so there would be no cost benefits to be made by amalgamating staff as all the CHC Scotia management and support staff look after EMEA and Global and not just the U.K.

Not enough meat on the bones and a bit like the BRS and CHC merger.


Last edited by Mitchaa; 24th Feb 2021 at 10:02.
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Old 24th Feb 2021, 20:33
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Perhaps a reverse take over makes sense?
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Old 24th Feb 2021, 23:46
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Old 25th Feb 2021, 04:20
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That’s the East Building. Used to be Corporate before that all got moved to Dallas 7-8 years ago. They’ve been trying to lease it out ever since - nothing new.
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Old 25th Feb 2021, 11:46
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Originally Posted by Mitchaa View Post
.... If anything, I would think it would be the other way where CHC Group would buy Babcock MCS U.K especially given Babcock’s statements about getting out of the market last year. ... ... ... ..
I can see where you're coming from with that. Looking back across the last few years I can sort of imagine a conversation at Babcock "Whose idea was it get into aviation anyway? We're Babcock. We say 'jump' and the government asks 'How high?'. Now we have all those flying types telling us we can't do this and we can't do that."
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