Rolls Royce shares up as £1.5bn deal completes
Shares in Rolls-Royce have jumped after the Derby manufacturing giant announced it has completed the £1.5bn sale of its ITP Aero business.
Last month, the Spanish government approved the sale of the ITP Aero business to a consortium of investors led by Bain Capital Private Equity.
The completion of the deal today saw shares in Rolls-Royce rise 5.7% to 79.43 pence each.
The sale completes Rolls-Royce’s disposal programme announced in August 2020 to raise proceeds of at least £2bn. The cash from the sale will be used to help rebuild the Rolls-Royce balance sheet.
ITP Aero was founded in 1989 for the European defence programme Eurofighter. It is an aeronautical engine company, currently responsible for maintaining engines for the Spanish armed forces. It is headquartered in Zamudio, Bizkaia in Spain.
“ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes,” Rolls-Royce said.
