Babcock International Group plc, UK's leading engineering support services, is in exclusive discussion to acquire a stake in helicopter transport services company, Avincis.

Avincis, headquartered in London, specialises in search and rescue, medical evacuation, and oil rig passenger flights, is owned by US private equity giant Kohlberg Kravis Roberts and Italian buyout firm Investindustrial who owns Aston Martin. A possible joint venture would mean that Babcock would be taking a stake alongside its two current shareholders.

Being a part owner of Avincis would also give the FTSE 100 contractor, access to potentially lucrative defense contracting markets, particularly in Spain and Italy.

A spokeman for Babcock stated that it is in "exclusive discussions" with Avincis about establishing a joint venture but cautioned there was no certainty that the ongoing talks would lead to a deal. Babcock have confirmed on going talks, while The Sunday Times reported that the firm is expected to pay EUR 1 billion and take on EUR 500 million of debt as part of the deal. 

Babcock has a 27,000-strong workforce. It earns just over half its sales from the Ministry of Defence, but also maintains power grids and railway stations, as well as providing services to the nuclear power sector.