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Rolls-Royce sells Commercial Marine business to Kongsberg

Friday, 06 Jul 2018

Rolls-Royce has announced it has signed an agreement to sell its Commercial Marine business to Kongsberg for an enterprise value of GBP 500 million and net proceeds of around GBP 350 million to GBP 400 million.

The move follows a strategic review by Rolls-Royce of its Commercial Marine operations announced in January 2018. The sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries and ship design capability. Rolls-Royce’s Ship Intelligence activities, which have seen the rapid development of technologies to enable remote and autonomous operation of commercial vessels, are also included.
Rolls-Royce Power Systems will continue to supply MTU engines to a range of customers in the marine market including operators of commercial vessels and yachts. The naval gas turbine propulsion activities will continue to be a core part of Rolls-Royce Defence.
Kongsberg, headquartered in Kongsberg, Norway, is an international, knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors. It is represented in more than 25 countries with approximately 7,000 employees and had a turnover of NOK 14.5 billion in 2017.
Mikael Makinen, Rolls-Royce president of Commercial Marine, said: “Today marks the start of a new horizon for our Commercial Marine business. This deal comes at a time when the maritime industry is at the dawn of a new and exciting era where digital and electrical technologies will transform shipping. Rolls-Royce has been responsible for leading many of those technological advancements, and with combination of great people, market-leading technology and a desire by Kongsberg to take this business to the next level, I am sure that this business will prosper in the years to come.
We will now work closely with Kongsberg as we go through the transition in the months ahead. I would like to pay tribute to the 3,600 Commercial Marine employees who have maintained absolute focus on their day jobs, winning business and maintaining the levels of support our customers expect.”
The transaction has been approved by the boards of both Rolls-Royce and Kongsberg and is expected to close in the first quarter of 2019, subject to clearance from the regulatory authorities.

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