Rolls-Royce sells Bergen Engines for €63m

Rolls-Royce has signed an agreement to sell its Bergen Engines business to global engineering group Langley Holdings for an enterprise value of €63m.

The deal is part of the aircraft engine-maker’s plan to generate at least £2bn from disposals. Sale proceeds of €70m from the transaction together with €40m of cash currently held within Bergen Engines, which Rolls will keep, will be used to help rebuild the company’s balance sheet.

Langley is funding the deal, together with working capital requirements for the Bergen business going forward, from existing cash reserves.

Rolls-Royce had previously agreed to sell Bergen for €150m to a Russian company but the deal was blocked in March by Norway on national security grounds.

Investors are also looking for progress on the sale of Rolls-Royce's Spanish unit ITP Aero, which could fetch €1.5bn.

Closing of the Bergen deal is subject to the satisfaction of certain closing conditions, Rolls said, adding that it had notified the Norwegian government. Completion was scheduled for December 31.

Langley, based in Nottinghamshire, central England, employs 4,600 people and has units in Germany, France and Italy. It will operate Bergen as a stand-alone business, Rolls said.