Rolls-Royce sells T&D business
Rolls-Royce has agreed to sell its electrical transmission and distribution business to VA Tech and its subsidiary Elin Energieversorgung GmbH of Austria for a cash consideration of £137.5m ($224m).
The sale includes the businesses and manufacturing operations in the UK, Canada, Mexico, Australia and New Zealand and its joint operation worldwide. The switchgear and transformer activities of NEI Africa are not included in the sale.
“The business of VA Tech Elin is complimentary to the Rolls-Royce T&D business from a technology, product and geographical point of view. VA Tech Elin plans to grow the business which, following the sale, will be among the five largest transmission and distribution companies in the world,” said Paul Heiden, director of Industrial Businesses for Rolls-Royce.
Rolls-Royce will continue to pursue its strategy of focusing on its gas turbine technology for the civil aerospace, defence and energy markets. On completion of the sale, all 2900 employees will transfer to VA Tech Elin.
– Rolls-Royce plc interim results showed that sales were up seven per cent for the group.