Rolls-Royce considers £700m energy sell-off

Tue, 16 Jan 2018 | DIVISION SALE

One of the UK’s most prestigious car manufacturers could dispose of one of its European subsidiaries in a deal anticipated to be worth £700 million as its new CEO continues to restructure the firm.

Luxury car maker Rolls-Royce is reported to be considering a sale of its German-based division L’Orange, which makes fuel injection systems for industrial diesel engines that are found in trains or ships. The UK firm originally took on L’Orange when Rolls-Royce bought out its partner Daimler in 2014, acquiring 100 per cent of German engineering firm Tognum in the process.

L’Orange’s workforce is comprised of around 1,000 staff with a client list featuring names like Caterpillar and Wartsila. Interested buyers include other large engineering firms and private equity groups, though Rolls-Royce has said it “intends to maintain close ties” with its subsidiary as a customer after the sale.

A spokesperson for the firm said: “Rolls-Royce notes the recent media speculation and confirms that it is reviewing its strategic options for L’Orange.

“Irrespective of the outcome of this review, Rolls-Royce intends to maintain close ties to L’Orange, either as an owner or as a key customer.”

The sale is the latest step in new chief executive Warren East’s plans to make the business more streamlined.
East, formerly CEO at semi-conductor manufacturer ARM Holdings, has removed entire tiers of management, cut investors’ dividends and reported a record annual loss of £4.6 billion since he joined Rolls in 2015.

The decision to sell L’Orange is part of an effort to refocus Rolls on its “core interests” by selling off smaller operations. East has refused to break up Rolls, however, so it can concentrate on its business building, particularly in its jet engine maintenance division which is responsible for half the company’s £14 billion annual revenues.


Share this article



Latest Businesses for Sale

Pharmacy
Cambridgeshire, UK Wide

Long established community pharmacy. First time on the market in 30 years. Now occupying exemplary new purpose built accommodation. Standard hours. Offers invited.

Asking Price: Offers Invited
Turnover: £885,000

LEASEHOLD


Creative Consultancy & Interior Design Solutions
UK Wide

Works closely with clients to produce interior design solutions for educational institutions, which could be marketed to more sectors.Additionally offers an array of creative media, including videos,presentations, websites, branding and full direct m...

Asking Price: Offers Invited
Turnover: £873,000

RELOCATABLE


Health Centre Pharmacy
Devon, UK Wide

Unopposed health centre pharmacy. Semi-rural location. In receipt of Pharmacy Access Scheme payments. Offers invited.

Asking Price: Offers Invited
Turnover: £845,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Jan
 

Chelmsford warehouse management firm bought by software provider | BUSINESS SALE

Chelmsford-based warehouse management solutions provider Min...

 
21
 
Jan
 

MBO at Newcastle market research company | MBO/MBI

Newcastle-based market research company Explain Market Resea...

 
20
 
Jan
 

Target Healthcare embarks on acquisition spree | BUSINESS SALE

Target Healthcare has completed the acquisitions of a develo...

Free guide: 10 Biggest Buyer Mistakes

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

Email


Related News

 
22
 
Jan
 

Chelmsford warehouse management firm bought by software provider | BUSINESS SALE

Chelmsford-based warehouse management solutions provider Min...

 
21
 
Jan
 

MBO at Newcastle market research company | MBO/MBI

Newcastle-based market research company Explain Market Resea...

 
20
 
Jan
 

Target Healthcare embarks on acquisition spree | BUSINESS SALE

Target Healthcare has completed the acquisitions of a develo...

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