Rolls-Royce completes £53m sale of German engines business
Register for free to receive latest news stories direct to your inboxRegister
Rolls-Royce has offloaded its German engines business in a deal worth €63m (£53m).
The company has sold its Bergen Engines business to Langley Holdings in a move to rebuild its balance sheet following its target to make at least £2bn from asset sales.
Some €91m, together with €16m of cash held within Bergen Engines which has now been retained by Rolls-Royce.
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.”
Langley Holdings, a family-owned engineering and industrial manufacturer employ around 5,600 people. Its main divisions are based in Germany, Norway, France, Italy and the UK, with a substantial presence in the United States, and more than 90 subsidiaries worldwide.
Anthony Langley, Chairman and CEO of Langley Holdings plc, said: “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.”
Bergen Engines, employing more than 900 people globally, generated revenues of approximately €200m last year. It will operate as a stand-alone business. Bergen’s sale follows an earlier deal with Russian TMH Group which was blocked by the Norwegian government in March 2021.
Jon Erik Røv, Managing Director, Bergen Engines, said: “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.”
In 2020, Rolls-Royce struggled with a £4bn loss following the drop of the global aviation industry in the pandemic.
Recently the manufacturing giant announced it has secured funding to bring forward plans to create low-cost, low-carbon nuclear power technology.
The Derby manufacturer’s Small Modular Reactor (SMR) will be launched after a £195m investment over three years through a consortium it has formed with BNF Resources UK Limited and Exelon Generation.
The funding will enable the business to secure grant funding of £210m from UK Research and Innovation funding, first announced by the Prime Minister in The Ten Point Plan for a Green Industrial Revolution.