Latest News | 29 September 2021
Rolls-Royce agreement to sell ITP Aero in ca. €1.7bn deal
Rolls-Royce has signed a definitive agreement to sell aerospace and engine component supplier ITP Aero for approximately €1.7bn.
The agreement is with Bain Capital Private Equity, a leading consortium of investors including interests to be held by Spanish co-investors SAPA and JB Capital.
The proposed sale was said to be a key element of Rolls-Royce's disposal programme, announced in August 2020, to raise proceeds of at least £2bn.
Rolls-Royce will receive total cash proceeds of approximately €1.7bn, which will be used to help rebuild the Rolls-Royce balance sheet, in support of the company's medium-term ambition to return to an investment grade credit profile. The transaction is expected to close in the first half of 2022.
Warren East, chief executive at Rolls-Royce, said: “Today's announcement is a significant milestone for our disposal programme as we work to strengthen our balance sheet, in support of our medium-term ambition to return to an investment grade credit profile. This agreement represents an attractive outcome for both Rolls-Royce and ITP Aero and we are also grateful to the Spanish and Basque Governments for the constructive discussions we have held with them during the process.
“The creation of an independent ITP Aero is a great opportunity for the company, its people and other stakeholders.”
ITP Aero will be an independent business led by current chief executive Carlos Alzola with headquarters and decision making remaining in Zamudio, Spain
The consortium's vision for an independent ITP Aero is to invest in growing the company's products, regions and customers and further enhance its status as a Spanish national champion. ITP Aero's partnership with Bain Capital and the consortium will allow it to further drive its strategy to be a pioneer of new technologies and world class manufacturing enabled by a highly skilled workforce.
Bain Capital is also open to negotiate the incorporation of further Spanish and Basque industrial partners in the consortium, representing up to 30 per cent of the equity, until the end of June 2022.
