Rolls-Royce plc reported it has now gained the approval of all the relevant authorities to complete its acquisition of the outstanding 53.1% of Industria de Turbo Propulsores SA, a Spanish aircraft engine and components manufacturer operated until now as a joint venture of Rolls and Sener Grupo de Ingeniería.
ITP reportedly is the ninth largest aircraft-engine and components manufacturer in the world, as listed by revenue, with design, R&D, casting and manufacturing, and assembly and testing capabilities in Spain, India, Malta, Mexico, the U.K. and the U.S. It has more than 3,000 employees.
Seventeen months ago, in July 2017, Sener announced its intention to exercise its sell option on its majority stake. Rolls-Royce bid €720 million ($847.5 million) for the Spanish operation, which provides critical parts to its Trent high-bypass turbofan engine series. The purchase also adds to Rolls’ ability to supply major defense programs, including turboprop engines for Airbus heavy-duty helicopters.
According to a Rolls statement, its consolidation of the ITP shares will be carried out over two years. The sale agreement allows Rolls to complete each tranche of the transaction either in cash or in the form of Rolls-Royce shares, as it may determine.
The completion of the sale is expected before the end of 2017.