Rolls-Royce to sell commercial marine business for £500m
Rolls-Royce Holdings
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Rolls-Royce on Friday said it was selling its commercial marine business to Norway's Kongsberg for an enterprise value of £500m and net proceeds of around £350m to £400m.
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The transaction has been approved by the boards of both companies and is expected to close in the first quarter of 2019, subject to clearance from the regulatory authorities, Rolls-Royce said in a statement.
Kongsberg is an international, knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors, Rolls-Royce said.
The sale follows a strategic review by Rolls-Royce of its commercial marine operations announced in January 2018. The sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries and ship design capability.
In 2017 the commercial marine business generated revenue of £817m with an operating loss of £70m. Rolls-Royce said the disposal was expected to have a £50m positive impact on profits.
Kongsberg will, through a trading arrangement, continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems.