Rolls-Royce clinches £1.5bn sale of ITP Aero division
Written by Hit Music Radio News on 27/09/2021
Rolls-Royce Holdings has clinched a £1.5bn sale of one of its largest subsidiaries, a deal that will catapult the aircraft engine-maker towards the £2bn disposal target it set out in an attempt to rebuild its balance sheet after the pandemic.
Sky News has learnt that Rolls-Royce will announce the sale of ITP Aero, a Basque Region-headquartered manufacturer of aircraft engines and turbines, later on Monday.
The buyer is a consortium led by Bain Capital, the private equity firm, and includes JB Capital and Sapa, an industrial group.
Rolls-Royce confirmed in August that it was in exclusive talks with a Bain-led consortium.
Sources said that Bain was expected to allow other consortium members to join during the coming months.
The deal will be an important milestone in Rolls-Royce’s recovery from the pandemic.
It also recently sold Bergen, a maritime engines business, and its stake in Air Tanker, which conducts in-flight refuelling for military aircraft
The £2bn disposal target was set by Warren East, Rolls-Royce’s chief executive, following the most turbulent year in the company’s history.
Goldman Sachs advised Rolls-Royce on the ITP Aero sale process.
In recent days, Rolls-Royce’s shares have rallied amid expectations of a swift rebound in UK-US air travel.
Rolls-Royce declined to comment, while Bain Capital could not be reached.
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