Rolls-Royce close to completing £1.4bn deal to sell Spanish arm

Rolls-Royce could follow-up the sale of its Norwegian business with a £1.4bn deal to sell Spanish-based ITP Aero.

Reports in the Daily Telegraph say the Derby-based Rolls is in exclusive talks to sell ITP Aero with private equity firm Bain Capital, which will form a joint-venture with engineering firm Sener Grupo de Ingenieria.

A statement from Rolls-Royce said: “Rolls-Royce confirms it has decided to enter into exclusive discussions with a consortium led by Bain Capital on a potential sale of the business. There can be no certainty that an agreement will be reached. Rolls-Royce will make a further statement as appropriate.”

Yesterday, Rolls revealed that it had sold its Norwegian maritime engine making arm, Bergen, to Retford-based Langley Holdings in a deal worth £54m.

Meanwhile, Rolls has returned to the black for the six months to 30 June.

The firm made an underlying operating profit of £307m, compared to a loss of £1.6bn last year.

Warren East, chief executive, said: “Our continued focus on the elements within our control, together with a good performance from Defence and order intake recovery in Power Systems have enabled us to deliver solid progress in the first half. The benefits of our fundamental restructuring programme in Civil Aerospace are evident in our reduced cash outflow and improved operational efficiency. This leaner cost base together with a strong liquidity position gives us confidence in our ability to withstand uncertainties around the pace of recovery in international travel and benefit from the eventual rebound.

“We are making disciplined investments in the new opportunities to drive future growth, particularly in net zero power where we are leading the way with innovation and engineering excellence. Our net zero pathway and targets, announced in June, set out our plan to enable the sectors in which we operate achieve net zero by 2050 by driving step-change improvements in engine efficiency, helping accelerate the take-up of sustainable fuels and developing new technologies.”

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