Rolls-Royce Holdings plc Rolls-Royce to sell Michell Bearings business (5079L)
April 28 2015 - 3:38AM
UK Regulatory
TIDMRR.
RNS Number : 5079L
Rolls-Royce Holdings plc
28 April 2015
28 April 2015
ROLLS-ROYCE TO SELL MICHELL BEARINGS BUSINESS TO
BRITISH ENGINES LIMITED
Rolls-Royce has today confirmed its intention to sell its
Michell Bearings business to British Engines Limited for a cash
consideration of GBP12.6m. Subject to licence consents, the sale
will be completed in the autumn.
Michell Bearings has been part of the Rolls-Royce Marine
business for the past 15 years and is a premium designer and
manufacturer of hydrodynamic bearings for a wide range of marine
and industrial applications.
Michell Bearings consists of a business based in the UK, located
in Newcastle-upon-Tyne, and a 51% shareholding in Michell Bearings
(India) Pvt Ltd, a non-wholly owned subsidiary company based in
Bangalore.
Mikael Makinen, Rolls-Royce, President - Marine, said: "The
agreement announced today will allow Rolls-Royce to concentrate on
the core areas of our Marine business where we can add most
value.
"It will also present Michell Bearings with fresh opportunities
by aligning the business with British Engines, which has a long
history in the North East of England.
"We will offer full support to employees who are impacted by the
change and we wish British Engines and its employees all the very
best with the future development of the Michell Bearings
business."
Consideration is subject to the value of cash generated by
Michell Bearings until the sale completes. The sale proceeds will
be utilised for working capital requirements. Michell Bearings
reported gross assets of GBP13.3m (before minority interests) as at
31 December 2014 and generated consolidated profits (before
minority interests) of GBP5.9m in the year to 31 December 2014.
About Rolls-Royce Holdings plc
1. Rolls-Royce's vision is to create better power for a changing
world via two main business divisions, Aerospace and Land &
Sea. These business divisions address markets with two strong
technology platforms, gas turbines and reciprocating engines.
Aerospace comprises Civil Aerospace and Defence Aerospace. Land
& Sea comprises Marine, Nuclear and Power Systems.
2. Rolls-Royce has customers in more than 120 countries,
comprising more than 380 airlines and leasing customers, 160 armed
forces, 4,000 marine customers including 70 navies, and more than
5,000 power and nuclear customers.
3. Our business is focused on the 4Cs:
-- Customer - placing the customer at the heart of our business
-- Concentration - deciding where to grow and where not to
-- Cost - continually looking to increase efficiency
-- Cash - improving financial performance.
4. Annual underlying revenue was GBP14.6 billion in 2014, around
half of which came from the provision of aftermarket services. The
firm and announced order book stood at GBP73.7 billion at the end
of 2014.
5. In 2014, Rolls-Royce invested GBP1.2 billion on research and
development. We also support a global network of 31 University
Technology Centres, which position Rolls-Royce engineers at the
forefront of scientific research.
6. Rolls-Royce employs over 54,000 people in more than 50
countries. Over 15,500 of these are engineers.
7. The Group has a strong commitment to apprentice and graduate
recruitment and to further developing employee skills. In 2014 we
employed 354 graduates and 357 apprentices through our worldwide
training programmes. Globally we have over 1,000 Rolls-Royce STEM
ambassadors who are actively involved in education programmes and
activities; we have set ourselves a target to reach 6 million
people through our STEM outreach activities by 2020.
For further information, please contact:
Investors:
Jilinda Crowley
Acting Director - Investor Relations
Rolls-Royce plc
Tel: +44 (0)20 7227 9237
jilinda.crowley@rolls-royce.com
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)20 7227 9163
richard.wray@rolls-royce.com
www.Rolls-Royce.com
This information is provided by RNS
The company news service from the London Stock Exchange
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