Listen to this Article Now
Rolls-Royce has agreed to sell ITP Aero in Spain to a group led by Bain Capital Private Equity for 1.7 billion euros ($2.0 billion), bringing the British engineering firm closer to its 2-billion-pound sale target. Rolls-Royce (OTC: RYCEY) shares rose 10% to 146 pence as a result of the sale, reaching their highest level since the early days of the pandemic in March 2020.
In August 2020, the 2-billion-pound sale plan was unveiled, with the goal of rebuilding a balance sheet that had been shattered by pandemic debts. The greatest asset on the block was ITP. The board of directors had approved the transaction, which the company stated was subject to regulatory approvals.
“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,” Rolls-Royce’s chief executive Warren East said in a statement.
ITP, which manufactures turbine blades, will continue to supply Rolls-Royce when the company is sold. According to the release, Bain Capital’s consortium includes Spanish co-investors SAPA and JB Capital, with the possibility of additional industrial partners joining.