Babcock Agrees to Sell Consultancy Unit to KBR for $400 Million

Babcock International Group Plc agreed to sell its Frazer-Nash Consultancy unit to engineering and infrastructure company KBR Inc for 293 million pounds ($405 million) in an all-cash deal.

The sale is part of Babcock’s plan to generate at least 400 million pounds over the next 12 months by disposing of non-core assets, the U.K. defense firm said in a statement Friday. Frazer-Nash, which Babcock acquired in 2007, employs about 900 people and provides engineering and technology services for critical national infrastructure.

Proceeds from the sale will be used to reduce debt, Babcock said. The London-based company is in the process ...