Rolls-Royce to sell diesel parts business to US company

Mon, 09 Apr 2018 | BUSINESS SALE

Rolls-Royce has announced it will sell its fuel injection company L'Orange to US firm Woodward in a £610 million deal as part of its plans to boost its balance sheet and boost the capital available to the firm for use in pursuing opportunities that will provide greater returns.

The sale of the Rolls-Royce Power Systems subsidiary has been backed by the boards of both firms in the hope it will "improve the resilience" of the company's profits and is expected to be completed by June 2018.

The sale will take place under the leadership of chief executive and former ARM chief Warren East, who began selling some of the company's assets when its fell in financial trouble two years ago.

Commenting on the forthcoming sale, Mr East stated that it would enable Rolls-Royce to apply greater focus on other high-growth opportunities and to ensure funds are allocated to developing core technologies that provide strong returns in the long-term.

"This transaction builds on the actions we have taken over the last two years to simplify our business," he said. "We have enjoyed working with L'Orange who have a leading position in their markets, excellent technology, a skilled workforce and strong leadership. We wish them well as they join the Woodward organisation."

Rolls-Royce announced a return to profit in March 2018, marking a significant recovery following its fall into the red by £4.6 billion in 2016. As well as benefitting from division sales, the company also gained a £2.6 billion accounting boost as a result of the strengthening of the pound.


Share this article



Latest Businesses for Sale

Trade Manufacturer of Windows, Doors & Conservatory Systems
East Anglia, South East, UK

Well Established Trade Manufacturer of Windows, Doors & Conservatory Systems. Skilled Staff Structure ‘In-Place’ with Multi Tiered Management. Loyal Client Base with a High Percentage of Repeat Business Offered. Offers invited.

Asking Price: Offers Invited
Turnover: £5,220,000

LEASEHOLD


PVCU WIindows & Doors Manufacturer
UK Wide

Long-established company of which offers the following, but is not limited to: casement windows, flush sash windows, bi-fold doors and conservatories. Serves trade buyers, new-build developers and domestic homeowners. Offers invited.

Asking Price: Offers Invited
Turnover: £2,500,000

LEASEHOLD


Manufacturer & Distributor of Avionics Equipment
London, Warwickshire, East Midlands, UK

Well established manufacturer and distributor of avionics equipment including communication headsets, radio equipment and head protection supplying the aviation and other ‘high noise’ environments. Established business trading over 19 years with exce...

Asking Price: Offers Invited
Turnover: £320,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
17
 
Nov
 

Warm Zones enters administration | ADMINISTRATION

A North Shields-based non-profit business dedicated to helpi...

 
15
 
Nov
 

Berketex Bride enters administration | ADMINISTRATION

With over 50 years in selling wedding dresses, Berketex Brid...

 
13
 
Nov
 

Intermet Refractories completes MBO deal | MBO/MBI

Intermet Refractories, a metal casting component manufacture...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
12
 
Mar
 

AE Aerospace on route to expand after MBO | MBO/MBI

The directors of engineering solutions firm AE Aerospace hav...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources