Rolls-Royce to buy remaining of aircraft engine and components maker ITP for $796 mn
25 July 2016
Rolls-Royce struck a deal to buy the 53.1 per cent it does not yet own in Spanish aircraft engine and components maker Industria de Turbo Propulsores SA (ITP), for €720 million ($796 million).
Rolls-Royce, the world's second-largest maker of aircraft engines, is buying the 53.1-per cent stake from co-owner Sener Grupo de Ingenierķa SA (Sener), a private engineering and technology group.
The deal comes after Sener exercised its put option, and Rolls-Royce said that the existing shareholder agreement allows flexibility to settle up to 50 per cent of the consideration in the form of Rolls-Royce shares.
Created in 1989, ITP is the ninth largest aircraft engine and components company in the world by revenue.
ITP designs, manufactures, casts, assembles and tests aeronautical engines. It also provides MRO services for a wide range of engines for regional airlines, business aviation, helicopters, industrial and defence applications.
It has partnered with Rolls-Royce on all Trent programmes, manufacturing low pressure turbines, and is currently researching alongside Rolls-Royce new intermediate pressure turbine technology for the next generation UltraFan engine.
The Bilbao-based company employs over 3,000 people in facilities in Spain, Mexico, India, Malta, the US and the UK, and generated revenues of €710 million in 2015.
ITP's gross assets as at 31 December 2015 were €1.7 billion.
Warren East, Rolls-Royce, CEO, said, "ITP has been a trusted partner for Rolls-Royce over many years as well as working for other engine manufacturers. This investment will add to our aerospace capability, with excellent facilities, services and products, to generate additional opportunities for profitable growth.''