Rolls-Royce has signed an agreement to sell its commercial marine business to Kongsberg for US$650m (£500m). The sale is expected to close in Q1 2019, subject to clearance from the regulatory authorities, includes propulsion technologies, deck machinery, automation and control systems, service network, ship design capability, and ship intelligence activities. It does not include Bergen Engines, which remains part of Rolls-Royce Power Systems, or Rolls-Royce naval business.
The move follows a strategic review, announced in January 2018, by Rolls-Royce of its commercial marine operations, which has approximately 3,600 employees, with the majority based in the Nordic region. In 2017, it generated revenue of US$1bn (£817m) with an operating loss of US$91m (£70m).
According to Rolls-Royce, the sale is expected to make a positive profit impact of US$65m (£50m) when based on 2017 pro forma figures. “This deal is good news for Rolls-Royce and Kongsberg and comes at a time when the maritime industry is at the dawn of a new and exciting era where digital and electrical technologies will transform shipping,” said Mikael Makinen, president of Rolls-Royce’s commercial marine business.
Kongsberg will finance the acquisition through a combination of new equity and new bond loan. “This acquisition makes us a more complete supplier to the maritime industry,” said Geir Håøy, CEO and president of Kongsberg. “The maritime industry is becoming increasingly globalized and is undergoing considerable technological and market driven changes. With this acquisition we will strengthening our strategic position with shipowners, shipyards and other customers and partners.”
- July 2018