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Rolls-Royce agrees sale of Spanish unit ITP for $2 billion By Reuters

by Mike Robinson

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© Reuters. FILE PHOTO A Rolls-Royce logo can be seen on the aerospace engineering and design site of Bristol in Britain. December 17, 2015. REUTERS/Toby Melville

LONDON (Reuters) -Rolls-Royce said it agreed to sell its Spanish unit ITP Aero to a consortium led by Bain Capital Private Equity for 1.7 billion euros ($2.0 billion), bringing the British engineering company close to its 2 billion pound target for disposals.

Rolls-Royce shares rose 10% to 146 pence after the sale, which was their highest point since March 2020’s pandemic.

In August 2020, the 2 billion pound disposal plan announced. It was intended to repair a damaged balance sheet. ITP was the largest asset.

Rolls-Royce had authorized the transaction, although it was still subject to regulatory approvals.

Warren East, Rolls-Royce chief executive stated that today’s announcement was a major milestone in our disposal program. He said it would support our medium-term aim to restore investment-grade credit ratings.

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Rolls-Royce will still be suppliers to ITP, a turbine blade-maker.

The statement stated that Bain Capital has a consortium of Spanish co-investors SAPA, JB Capital and the possibility for additional industrial partners.

($1 = 0.8537 euros)

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