Rolls-Royce has agreed to divest its Bergen Engines business to Russia-based TMH Group’s international branch for approximately €150m.
The sale follows Rolls-Royce’s portfolio evaluation that was announced during its 2019 full-year results.
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The agreement follows a strategic review by Rolls-Royce of Bergen Engines announced in February 2020. Bergen reported £239m sales in 2019.
TMH Group will acquire the aerospace manufacturer’s medium-speed engine factory, service workshop, and foundry in Norway, as well as the engine and power plant design capability and global service network across more than seven countries.
Once the deal is complete, TMH International will operate Bergen Engines as a stand-alone business.
Headquartered in Switzerland, TMH International has operations in Argentina, Cuba, Egypt, Germany, Hungary, Israel, and South Africa.
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By GlobalDataRolls-Royce CEO Warren East said: “We believe that this agreement is a good outcome for the Bergen Engines business and its people. The sale of Bergen Engines is a part of our ongoing portfolio evaluation to create a simpler, more focused group and contributes towards our target to generate at least £2bn from disposals as announced in August.”
Bergen Engines has approximately 950 employees, supplying more than 7,000 engines to marine and power generation customers worldwide since 1946.
Boards of both Rolls-Royce and TMH have already approved the deal, which is expected to be completed during the second half of 2021.
TMH CEO Kirill Lipa said: “Together with Bergen Engines, TMH intends to develop a long-term strategy based on carbon-neutral applications. This is the clear technological direction for the future of combustion engines with significant demand not only in Russia but also worldwide.”
Recently, Rolls-Royce tested 100% Sustainable Aviation Fuel (SAF) on Pearl 700 business aviation engine for the first time.
