Westinghouse to buy Rolls-Royce's North American Civil Nuclear unit
27 September 2019
US nuclear energy firm Westinghouse Electric Co said on Thursday it would buy Rolls-Royce Holding’s Civil Nuclear Systems and Services business in North America, to boost its growth in North American and European nuclear markets.
Westinghouse Electric Company signed a definitive agreement to acquire Rolls-Royce’s civil nuclear systems and services business in North America, expanding Westinghouse’s global capabilities in digital, engineering services, plant automation and monitoring systems, field services and manufacturing.
In a separate release, Rolls-Royce said the sale of its North American civil nuclear services businesses to Westinghouse Electric Company followed a review of options for the businesses and is part of a drive to simplify the group and focus on meeting the vital power needs of its customers.
The sale comprises civil nuclear services businesses in the US and Canada along with sites at Mondragon, France, and Gateshead, UK, which are currently part of our Power Systems business unit.
It does not include the instrumentation and controls business based in Grenoble, France, which remains under review. It also does not include our UK nuclear new build operations or small modular reactor activities, which will continue contributing to the provision of low carbon power for the UK.
Warren East, Rolls-Royce Chief Executive, said: “Our North America services business offers great opportunities for Westinghouse as a leading player in the nuclear energy industry. We believe this transaction represents the best outcome for this part of our civil nuclear operations and its people.”
“Creating customer value and supporting our customers’ operations is a key driver for Westinghouse. Acquiring Rolls-Royce will strengthen our ability to serve the nuclear operating fleet through an expanded presence in our core business while adding new digital offerings,” said Patrick Fragman, Westinghouse president and chief executive officer. “This acquisition is an important step in our growth strategy. We look forward to welcoming the employees of Rolls-Royce to Westinghouse.”
The acquisition of Rolls-Royce will expand Westinghouse’s operating plant services capabilities and enhance the company’s digital innovation efforts to optimise customer planning and maintenance, and provide engineering solutions to maximise cost effectiveness and obsolescence risk, the company stated in a release.
Global customers of both Westinghouse and Rolls-Royce global customer base through an expanded presence and synergies between both companies, enhancing customer offerings and experience in field services and plant automation, it added.
Rolls-Royce operates 11 sites in Canada, France, the United Kingdom and the United States.
Westinghouse said the transaction is subject to customary closing conditions and regulatory approvals.
Westinghouse Electric Company is the world's pioneering nuclear energy company and is a leading supplier of nuclear plant products and technologies to utilities throughout the world.
Rolls-Royce operates 11 sites in Canada, France, the United Kingdom and the United States, Westinghouse said in a statement.
In 2018, Rolls-Royce reported revenues of $70 million with ~500 employees, which were consolidated within the results of its Power Systems business unit.