Babcock in talks with helicopter operator Avincis

Babcock International is in joint venture talks with Avincis, one of the world’s biggest helicopter operators, amid speculation that the discussions could lead to a full scale £1bn-plus bid.

Neither side would comment on whether the “exclusive” talks were a prelude to an agreed offer but analysts feel Avincis fits Babcock’s ambition to become a more powerful international engineering support services business.

Babcock has a 27,000-strong workforce and runs the Devonport and Rosyth dockyards.

Avincis, owned by KKR, the US private equity group and Investindustrial, the Italian owners of Aston Martin, has a fleet of more than 350 helicopters in ten countries.

It bought the Bond Aviation fleet, which has 23 sites across the UK, two years ago and specialises in “mission critical” operations ranging from medical emergencies to search and rescue and fire-fighting.

The tie-up with Avincis is the biggest attempt so far by Peter Rogers, chief executive, to give Babcock, which operates the Devonport and Rosyth dockyards, a bigger global presence.

Three years ago Babcock picked up VT, formerly Vosper Thorneycroft, for £1.4bn but buying Avincis represents a more ambitious and costly diversification.

Babcock said it is in “exclusive discussions” with Avincis about establishing a joint venture but cautioned there was no certainty the talks would lead to a deal.