Rolls-Royce PLC has a new agreement to sell its Bergen Engines subsidiary for €63 million (est. $87.5 million) to Langley Holdings PLC, a U.K.-based engineering and manufacturing portfolio. The deal replaces an earlier agreement to sell Bergen Engines to a Russian investment group, which the Norwegian government blocked in March citing national security concerns.
“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 €2 billion ($2.75 billion) from disposals, as announced last year,” explained Warren East, CEO of Rolls-Royce.
The group has endured significant losses in the past year as commercial-aircraft new orders and maintenance programs have been negatively impacted by the global coronavirus pandemic.
Reportedly, Rolls-Royce also has an agreement to sell its ITP Aero holding to Sener, its one-time joint-venture partner, and private-equity group for $1.9 billion. ITP produces turbofan engines for civil and defense aircraft, as well as industrial gas turbines, with activities ranging from R&D, design, metalcasting, engine manufacturing, and testing.
Bergen Engines produces gas and diesel engines for ships and power generation and has been a Rolls-Royce holding since 1999. It has approximately 950 employees, mostly in Bergen, Norway, where it is headquartered and operates a foundry, engine factory, and service operation. It also has service operations in seven other countries.
Anthony Langley, chairman and CEO of Langley Holdings plc, called the Bergen Engines acquisition “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.”