Rolls-Royce wins £1.9bn B-52 engine contract
Aerospace engineer Rolls-Royce said it had won a £1.9bn deal to supply parts for the US Air Force’s (USAF) fleet of B-52 bombers for the next 30 years.
Rolls will provide roughly 650 engines for the 76 planes from its American manufacturing plant in Indianapolis, the company said on Monday.
The engineer recently completed a $600m modernisation of that plant.
Monday's deal is part of USAF’s strategy to upgrade their B-52 fleet to ensure they keep running until 2050.
It comes as Rolls is in the process of offloading its Spanish arm to private equity firm, Bain Capital which has until Monday to finalise a £1.3bn acquisition of ITP Aero, which is based near Bilbao.
The deal was halted by demands from the Spanish and Basque authorities to involve local companies in the purchase to ease concerns about job losses and weaker investment.
Following news of the company's contract win with the USAF over rival Pratt & Whitney, Morgan Stanley analyst, Andrew Humphrey, reiterated his 'equalweight' recommendation and 134.0p target price for the shares.