Rolls-Royce signed an agreement to sell its Commercial Marine business, to Kongsberg, for £500m and net proceeds of around £350m to £400m. The sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries and ship design capability. Rolls-Royce’s Ship Intelligence activities, including remote and autonomous operation of commercial vessels, are also included.
Kongsberg will continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems. Kongsberg will also be a partner and supplier to Rolls-Royce’s Defence business for the supply of Commercial Marine products used on Naval vessels.
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Rolls-Royce Power Systems will continue to supply MTU engines to customers in the marine market including operators of commercial vessels and yachts. The Naval gas turbine propulsion activities will still be a part of Rolls-Royce Defence.
Warren East, Chief Executive of Rolls-Royce, stated:
This transaction builds on the actions we have taken over the last two years to simplify our business. The sale of our Commercial Marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.
Speaking on the occasion, Geir Håøy, Chief Executive and President of Kongsberg, noted that the acquisition of Rolls-Royce Commercial Marine will enable the company to improve its capabilities to the maritime industry.
The transaction has been approved by the boards of Rolls-Royce and Kongsberg and will be finalized in the first quarter of 2019, as it is subject to clearance from the regulatory authorities.
The proceeds will be used to improve the resilience of the Rolls-Royce balance sheet and provide additional capital.