Rolls-Royce to sell its energy gas turbine and compressor business
to Siemens
May 06, 2014 + + + Rolls-Royce announced today that it has signed
an agreement to sell its energy gas turbine and compressor business to
Siemens for a US$1.3 billion cash consideration.
The business being
sold supplies aero-derivative gas turbines, compressor systems and related
services to customers in the Oil and Gas and Power Generation sectors.
On completion of the transaction, Rolls-Royce will receive a further
£200 million for a 25 year licensing agreement, granting Siemens access to
relevant Rolls-Royce aero-derivative technology for use in the 4 to 85
megawatt power output gas turbine range.
Rolls-Royce's energy gas
turbine and compressor business has around 2,400 employees. In 2013, it
was reported within the results of the energy business where it
contributed £871 million (US$1.48 billion) of revenue and £72 million
(US$122 million) of underlying profit. Siemens' energy sector has around
83,500 employees and in 2013 contributed revenue of €26.6 billion (US$37
billion) and underlying profit of €1.9 billion.
John Rishton,
Rolls-Royce, CEO, said: “This agreement will give the energy business
greater opportunities as part of a much larger energy company and allows
Rolls-Royce to concentrate on the areas of business where we can add most
value.”
The transaction excludes certain smaller power generation
sector assets. On completion of the transaction, Rolls-Royce's
shareholding in the Rolls Wood Group (RWG) joint venture, that provides
maintenance, repair and overhaul services, will be transferred to Siemens.
The transaction has been approved by the boards of directors of
Rolls-Royce and Siemens, and is expected to complete before the end of
December 2014, subject to closing conditions, including regulatory
approvals.
Source: Simon Goodson, Director Investor Relations
Rolls-Royce plc Richard Wray, Director of External Communications,
Rolls-Royce plc
www.rolls-royce.com
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