Rolls-Royce finalises £1.5bn sale of Spanish subsidiary to Bain
Rolls-Royce has finalised the €1.8bn (£1.5bn) sale of Spanish subsidiary ITP Aero to a group of investors led by private equity giant Bain.
Following the £1.5bn sale, shares went up 3 per cent.
“ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes,” Rolls Royce said in a statement.
An aero engine and gas turbine manufacturer, ITP was founded in 1989 as a joint venture between Rolls-Royce and Spanish engineering firm SENER.
The deal – which was initially announced in September last year as part of Rolls-Royce’s disposal programme – reached completion after the Spanish government approved the transaction.
The proceeds will be used to rebuild Rolls-Royce’s balance sheet, including repaying a £2bn loan, after the company was plagued by two years of pandemic.
The engine manufacturer recently posted squeezed profits for the first six months of the year due to supply chain issues and soaring inflation rates, Morning Wire reported.
Rolls-Royce, ITP Aero and Bain declined to comment.