Rolls-Royce completes £1.5bn sale

Rolls-Royce has completed the £1.5 billion sale of one of its businesses to a consortium of investors.

A year ago, the engineering giant, which has its civil aerospace and defence divisions in Derby, announced it had signed a definitive agreement with Bain Capital Private Equity to sell its Spanish aerospace and engine component supplier ITP Aero.

In August, the Spanish government gave the deal the green light, paving the way for the sale to Bain, which is a consortium of investors that includes the interests of Spanish co-investors SAPA and JB Capital.

The sale is a key element of Rolls-Royce’s disposal programme, announced two years ago, to raise proceeds of at least £2 billion.

The cash from the ITP Aero sale will be used to help rebuild Rolls-Royce’s balance sheet.

Rolls-Royce said that the sale of ITP Aero completes its disposal programme.

It added that the firm will remain a key strategic supplier and partner for its civil aerospace and defence programmes.