Rolls-Royce offloads Norwegian business in £54m deal
Rolls-Royce has agreed to sell its Bergen Engines business in Norway to Retford-based Langley Holdings in a deal worth £60m.
The deal is part of the Derby manufacturer’s plans to dispose on non-core businesses and save £2bn.
The sale includes the Bergen Engines factory, service workshop and foundry in Norway; engine and power plant design capability; and a global service network spanning more than seven countries. Bergen Engines employs more than 900 people worldwide including 650 in the main factory in Hordvikneset.
Langley Holdings is a global, engineering group with its main operations in Germany, Italy, France and the UK, alongside a substantial presence in the US. The group employs around 4,600 people. Its activities range from the production of uninterruptible power systems, packaging machinery and electric motors and generators, to the manufacture of safety-critical mechanical handling equipment including for the UK Ministry of Defence’s submarine missile loading facility at Coulport, Scotland.
Warren East, CEO of Rolls-Royce, said: “We believe that this agreement will provide Bergen Engines and its skilled workforce with a new owner able to take the business on the next step of its journey. The sale of Bergen Engines is a part of our ongoing portfolio management to create a simpler, more focused group and contributes towards our target to generate at least £2bn from disposals, as announced last year.”
Anthony Langley, chairman and CEO of Langley Holdings, said: “We are very pleased to have reached this agreement with Rolls-Royce. The acquisition of Bergen Engines is a strategic step in the development of our power solutions division, and I am looking forward to welcoming the 900 plus employees of Bergen Engines to our family of businesses.”
Jon Erik Røv, managing sirector, Bergen Engines, said: “Today marks the beginning of a new era for Bergen Engines. Through the investments made by Rolls-Royce in our business, together with our dedicated and skilled workforce, and worldwide reputation for quality, I’m confident that Bergen Engines will prosper with Langley Holdings as our new owners.”