Rolls-Royce has been given the green light by the Spanish government to sell its ITP Aero business for 1.8 billion euros (£1.5 billion), the engineering firm announced.
The engineering giant will hand over the Spanish business – which builds aircraft engines and turbines – to a consortium of investors led by private equity firm Bain Capital.
The sale completes the company’s plan to raise at least £2 billion and help rebuild its balance sheet, Rolls-Royce said on Wednesday.
The consortium acquiring ITP Aero, which has its headquarters in the Basque region, also includes Sapa and JB Capital.
— Rolls-Royce Press (@RollsRoycePress) August 3, 2022
Last year, Rolls-Royce chief executive Warren East called the sale a “significant milestone” in its cash-boosting disposal programme.
“This agreement represents an attractive outcome for both Rolls-Royce and ITP Aero and we are also grateful to the Spanish and Basque governments for the constructive discussions we have held with them during the process,” he said.
“A financially, technologically and industrially strong ITP Aero is also vital to Rolls-Royce.”
The FTSE 100 firm – which took in £10.95 billion in revenue in 2021 – said ITP Aero will remain a key supplier and partner.
The announcement comes ahead of the firm reporting its half-year financial results on Thursday.