Acquisition

RNS Number : 0420Q

Rolls-Royce Holdings plc

26 August 2014

 



26 August, 2014

ROLLS-ROYCE COMPLETES ACQUISITION OF ROLLS-ROYCE POWER SYSTEMS

Rolls-Royce today announced the completion of its acquisition of Rolls-Royce Power Systems (RRPS). 

This follows the announcement on March 7, 2014 that the Board of Management of Daimler AG had decided to exercise the put option relating to its 50% equity interest in RRPS and the announcement on 16 April 2014 that Rolls-Royce and Daimler had agreed on a fair market valuation for the shareholding of EUR 2.43 billion.

John Rishton, CEO of Rolls-Royce said: "We are pleased to welcome Rolls-Royce Power Systems fully into Rolls-Royce. The business adds scale and capability to our reciprocating engines portfolio. It has outstanding technology, operates in long-term growth markets and has proved a valuable addition to our Marine & Industrial Power Systems division."

RRPS, which previously operated as Tognum AG, is a world leader in reciprocating engines, propulsion and distributed energy systems. It is headquartered in Friedrichshafen in Southern Germany and employs around 11,000 people.

Ulrich Dohle, CEO of Rolls-Royce Power Systems said: "With our well-known MTU high-speed engines, MTU Onsite Energy distributed energy systems, Bergen medium-speed engines and L'Orange fuel-injection systems, we are proud that we are now a full member of the Rolls-Royce family and look forward to contributing to its success."

Daimler will remain an important partner in the development and supply of medium and heavy-duty diesel engines in the power range below 500kW. MTU markets the off-highway versions of these truck-derivate engines to customers in the construction, industrial and agricultural markets.

About Rolls-Royce Holdings plc

1.   Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine and Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.

2.   Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Nuclear & Energy and Power Systems (RRPS). On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.

3.   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 1,600 energy and nuclear customers.

4.   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.

5.   Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £70.4 billion at 30 June 2014.

6.   In 2013, Rolls-Royce invested £1.1 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.

7.   Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.

8.   The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 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:

Simon Goodson
Director, Investor Relations

Rolls-Royce plc

Tel: [phone]

Email: [e-mail]

Media:

Richard Wray
Director of External Communications

Rolls-Royce plc
Tel: [phone]
Mobile [phone]
Email: [e-mail]

 

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