TIDMRR.
RNS Number : 4793H
Rolls-Royce Holdings plc
04 August 2021
04 August 2021
ROLLS-ROYCE SIGNS AGREEMENT TO SELL BERGEN ENGINES BUSINESS
TO LANGLEY HOLDINGS
Rolls-Royce (LSE:RR., ADR:RYCEY) has signed an agreement to sell
its Bergen Engines medium speed liquid fuel and gas engines
business to global engineering group Langley Holdings plc for an
enterprise value of EUR63m. Langley is funding the deal, together
with working capital requirements for the Bergen business going
forward, from existing cash reserves.
The agreed sale of Bergen Engines is a part of our ongoing
portfolio management to create a more focused group and follows a
strategic review of Bergen Engines. It contributes towards our
target to generate at least GBP2bn from disposals, as announced
last year. Sale proceeds of EUR 70m from the transaction together
with EUR40m of cash currently held within Bergen Engines which is
to be retained by Rolls-Royce, will be used to help rebuild the
Rolls-Royce balance sheet in support of our medium-term ambition to
return to an investment grade credit profile.
The agreed sale includes the Bergen Engines factory, service
workshop and foundry in Norway; engine and power plant design
capability; and a global service network spanning more than seven
countries. Bergen Engines employs more than 900 people worldwide
including 650 in the main factory in Hordvikneset. In 2020, the
business generated revenues of approximately EUR200m with the
assets and liabilities of the business presented as held for sale
in the Rolls-Royce Holdings plc consolidated balance sheet.
Langley Holdings, headquartered in the UK, is a diverse, global,
engineering group with its main operations in Germany, Italy,
France and the UK, alongside a substantial presence in the US. The
group employs around 4,600 people. Its activities range from the
production of uninterruptible power systems, packaging machinery
and electric motors and generators, to the manufacture of
safety-critical mechanical handling equipment including for the UK
Ministry of Defence's submarine missile loading facility at
Coulport, Scotland. Established in 1975 by Anthony Langley,
Chairman and CEO, the Langley Group is financially independent and
remains under family ownership. Bergen Engines will be operated by
Langley Group as a stand-alone business.
The agreement is subject to the satisfaction of certain closing
conditions. We have notified the Norwegian government of the agreed
sale and effective completion is scheduled for the 31 December
2021. Bergen Engines' long-term relationship with Kongsberg
Maritime, distributor of Bergen medium speed engines to the
maritime market, is planned to continue as is.
Warren East, CEO of Rolls-Royce, said: "We believe that this
agreement will provide Bergen Engines and its skilled workforce
with a new owner able to take the business on the next step of its
journey. 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 GBP2bn from
disposals, as announced last year."
Anthony Langley, Chairman and CEO of Langley Holdings plc, said:
"We are very pleased to have reached this agreement with
Rolls-Royce. The acquisition of Bergen Engines is 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."
Jon Erik Røv, Managing Director, Bergen Engines, said: "Today
marks the beginning of a new era for Bergen Engines. Through the
investments made by Rolls-Royce in our business, together with our
dedicated and skilled workforce, and worldwide reputation for
quality, I'm confident that Bergen Engines will prosper with
Langley Holdings as our new owners."
For further information, please contact:
Media:
Teresa Towner
External Communications Manager
Rolls-Royce plc
Tel +44 (0) 7071 832 542
Teresa.Towner@Rolls-Royce.com
Merethe Fjeldstad
Bergen Engines
Tel: +47 913 72 128
Merethe.Fjeldstad@ps.rolls-royce.com
Langley Holdings
Crista Baxter
Head of Group Marketing & Communications
Langley Holdings plc
Tel: +44 (0) 7778 412468
Crista.baxter@langleyholdings.com
Investors:
Isabel Green
Head of Investor Relations
Rolls-Royce plc
Tel +44 (0) 7880 160976
Isabel.Green@Rolls-Royce.com
www.Rolls-Royce.com
About Rolls-Royce Holdings plc
1. Rolls-Royce pioneers the power that matters to connect, power
and protect society. We have pledged to achieve net zero greenhouse
gas emissions in our operations by 2030. We joined the UN Race to
Zero campaign in 2020 and have committed to ensuring our new
products will be compatible with net zero operation by 2030, and
all products will be compatible with net zero by 2050.
2. Rolls-Royce has customers in more than 150 countries,
comprising more than 400 airlines and leasing customers, 160 armed
forces and navies, and more than 5,000 power and nuclear
customers.
3. Annual underlying revenue was GBP11.76 billion in 2020 and we
invested GBP1.25 billion on research and development. We also
support a global network of 28 University Technology Centres, which
position Rolls-Royce engineers at the forefront of scientific
research.
4. Rolls-Royce Holdings plc is a publicly traded company
(LSE:RR., ADR: RYCEY, LEI: 213800EC7997ZBLZJH69).
About Langley Holdings plc
Langley Holdings plc (Langley) is a globally operating,
multi-disciplined engineering and industrial manufacturing concern,
principally providing capital equipment technologies to diverse
markets around the world. Langley businesses are either outright
market leaders or occupy strong niche positions in their respective
fields, providing advanced technologies in a solutions-based
approach.
The group's principal operations are currently based in Germany,
Italy, France and the UK and have worldwide manufacturing and
commercial footprint of several million square feet with 17
production facilities in Germany, Italy, France, the United States,
Asia and the UK with more than 100 sales and service subsidiaries
across Europe, the Americas, the Far East and Australasia. The
group was established in 1975 by Anthony Langley, the current
Chairman & CEO, and remains in family ownership.
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END
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