Rolls-Royce has agreed to sell Norway-based Bergen Engines to engineering business Langley Holdings for EUR110 million (USD130.2 million) and has begun negotiating with a possible buyer of Spanish subsidiary Industria de Turbo Propulsores (ITP Aero), according to a pair of Rolls-Royce announcements.
The Bergen Engines plant in Hordvikneset near Bergen, Norway. (Rolls-Royce)
Both potential transactions are part of an effort by the British engine manufacturer to divest non-core assets and raise at least GBP2 billion (USD2.8 billion) to shore up its finances, which have been affected by the Covid-19 pandemic-fuelled commercial aviation slump.
Rolls-Royce said on 4 August that it has notified the Norwegian government of the planned Bergen Engines sale, which it seeks to complete in December. “We will be advised by the government if any further consultations are required,” a Rolls-Royce spokesperson told Janes.
Rolls-Royce previously tried to sell Bergen to TMH International, which is a part of Russia-based TMH Group, but was blocked by the Norwegian government in March on national security grounds. By reaching a deal with Langley, which is a family-owned, UK-based company, “we're now back on track” to sell Bergen, Rolls-Royce chief financial officer Panos Kakoulis told analysts.
Bergen makes medium-speed gas and diesel engines for commercial and naval vessels and land-based power-generation applications. It has more than 900 employees and generated revenue of about EUR200 million in 2020.
Separately, Rolls-Royce announced on 4 August that it has begun exclusive talks with a consortium led by US investment firm Bain Capital about selling ITP Aero, which builds commercial and military aircraft engines and has about 3,600 employees.
“There can be no certainty that an agreement will be reached,” Rolls-Royce said. “Rolls-Royce will make a further statement as appropriate.”
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