Rolls-Royce secures €1.5bn ITP Aero sale
Shares soar 10% on news as company nears £2bn disposal target
Rolls-Royce on Monday said it had secured agreement to sell its ITP Aero division for around €1.7bn (£1.5bn) to Bain Capital Private Equity, which is leading a consortium of Spanish and Basque companies.
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Agreement is a key element of Rolls-Royce's disposal programme to raise £2bn to bolster its balance sheet and support the engine maker's medium-term ambition to return to investment grade credit profile after the Covid pandemic hammered the airline industry.
The sale sent Rolls-Royce shares up 10%. Turbine blade-maker ITP will remain a supplier to Rolls-Royce after its sale, the company said in a statement.
Bain's consortium includes Spanish co-investors SAPA and JB Capital, with the potential for further industrial partners to join, it added.
Rolls chief executive Warren East said the creation of an independent ITP Aero "is a great opportunity for the company, its people and other stakeholders".
"A financially, technologically, and industrially strong ITP Aero is also vital to Rolls-Royce. The company will remain a key strategic supplier and partner for decades to come."
The company has also recently sold maritime engine business Bergen, a maritime engines business, and its stake in Air Tanker, which conducts in-flight refuelling for military aircraft.