Rolls-Royce sells commercial marine business for £500m
Rolls-Royce is set to sell its Commercial Marine business, to Kongsberg, in a deal worth around £500m
Kongsberg, headquartered in Kongsberg, Norway, provides high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors. It is in more than 25 countries with approximately 7,000 employees and has a turnover of NOK 14.5bn (2017).
The move follows a strategic review by Rolls-Royce of its Commercial Marine operations announced in January 2018.
Kongsberg will, through a trading arrangement, continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems. T
Rolls-Royce Power Systems will continue to supply MTU engines to a range of customers in the marine market including operators of commercial vessels and yachts. The Naval gas turbine propulsion activities will continue to be a core part of Rolls-Royce Defence.
Commercial Marine has approximately 3,600 employees, with the majority based in the Nordic region. In 2017 the Commercial Marine business generated revenue of £817m with an operating loss of £70m reflected in the Group’s financial results.
Warren East, chief executive of Rolls-Royce, said: “This transaction builds on the actions we have taken over the last two years to simplify our business. The sale of our Commercial Marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.”
Geir Håøy, chief executive and President of Kongsberg, said: “The acquisition of Rolls-Royce Commercial Marine makes us a more complete supplier to the maritime industry. The maritime industry is becoming increasingly globalised and is undergoing considerable technological and market driven changes. With this acquisition we will strengthen our strategic position with shipowners, shipyards and other customers and partners.”