Rolls-Royce continues disposal plan with €150m Bergen Engines sales
Rolls–Royce has today announced that it will sell an engine units to Russian firm TMH for €150m (£132.5m).
The sale of gas and diesel subsidiary Bergen Engines is the second disposal the FTSE 100 firm has made it as it seeks to raise £2bn to survive the pandemic.
Chief exec Warren East said: “We believe that this agreement is a good outcome for the Bergen Engines business and its people.
“The sale of Bergen Engines is a part of our ongoing portfolio evaluation to create a simpler, more focused group and contributes towards our target to generate at least £2bn from disposals, as announced in August.”
The engineering giant saw its revenues destroyed last year as the coronavirus crippled global air travel.
Rolls-Royce is paid according to the number of hours for which airlines use its engines.
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The disposal plan is a bid to fix the resulting damage to its finances. It has also already completed a £2bn rights issue.
Bergen Engines has been a part of Rolls-Royce since 1999 and has approximately 950 employees, with the majority based in Norway.
In 2019 the business generated revenues of £239m which were consolidated within the results of Rolls’ power systems business.
Back in December the firm said that it had sold it nuclear instruments business to French nuclear giant Franatome for an undisclosed fee.
Shares in the firm rose 0.6 per cent today.