Rolls-Royce completes multi-million sale of marine engine-making arm Bergen to UK's Langley
The completion of the sale, which was revealed in August, marks another step towards Rolls’ target to make at least £2 billion from asset sales as chief executive Warren East looks to bolster the group’s balance sheet.
Bergen Engines employs more than 900 people globally and generated some €200m in revenues last year.
Its new owner, Langley, has its headquarters in the UK and employs in the region of 4,600 people, with key operations in Germany, Italy, France and Britain, alongside a substantial presence in the US. It will run Bergen as a standalone business.
The disposal of Bergen comes after an earlier deal with Russian group TMH Group was blocked by the Norwegian government last March.
Rolls said in a recent trading update that it was “firmly on course” to complete its disposals programme, with sales announced already totalling some £2bn.
East has been overhauling the group to strengthen its balance sheet, selling off assets and raising billions from issuing new debt and equity.
He has also embarked on a swingeing cost-cutting programme that will lead to 9,000 jobs being cut worldwide. The group has been hit hard by the impact of the pandemic on the global aviation sector, announcing plans in 2020 to cut hundreds of jobs at its Inchinnan facility near Glasgow.
Ongoing woes in the sector have kept its civil aerospace arm - its largest business - under pressure.
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