Rolls-Royce confirms €720m aero engines firm deal

Derby-based Rolls-Royce has confirmed it will pay EUR720m for the 53.1% shareholding in Industria de Turbo Propulsores (ITP) it doesn’t already own from SENER Grupo de Ingeniería SA.

This follows completion of due diligence,following an announcement in July, that Rolls-Royce would buy outstanding stake.

The money will be paid over a two-year period following completion in eight evenly spaced instalments of equal value, says Rolls-Royce. A statement from the company said: “The updated agreement allows flexibility to settle the consideration either in cash, in the form of Rolls-Royce shares or any mixture of the two, as preferred by Rolls-Royce. A decision as to whether each payment will be settled in cash, shares or cash and shares will be determined by Rolls-Royce during the payment period.”

Completion of the deal remains subject to regulatory clearances and is expected in 2017.

Warren East, Rolls-Royce, CEO, said: “We have enjoyed a successful partnership with SENER, building ITP to its current scale and capability. This agreement represents the best outcome for both of our companies and we look forward to welcoming ITP’s employees into Rolls-Royce.”

Ignacio Mataix, ITP, CEO added: “I am delighted that we can now start planning our integration into the Rolls-Royce family. We already know Royce-Royce well and are excited about the opportunities offered by joining a global leader in advanced engineering. We look forward to creating even better aerospace products and services together. At the same time, we will maintain our current portfolio and strengthen our global position.”

ITP is headquartered in Bilbao, Spain, and employs over 3,000 people in facilities in Spain, Mexico, India, Malta, US and the UK.

Shares in Rolls-Royce were up 0.8% at 671.00 pence on Monday afternoon.