Rolls-Royce signs agreement to sell its Bergen Engines business for €63m

Langley is funding the deal, together with working capital requirements for the Bergen business going forward, from existing cash reserves.

The agreed sale of Bergen Engines is a part of Roll-Royce’s ongoing portfolio management to create a more focused group and follows a strategic review of Bergen Engines.

The engineering giant said It contributes towards its target to generate at least £2bn from disposals, as announced last year.

Sale proceeds of €70m from the transaction together with €40m of cash currently held within Bergen Engines which is to be retained by Rolls-Royce, will be used to help rebuild the Rolls-Royce balance sheet in support of its medium-term ambition to return to an investment grade credit profile.

Warren East, CEO of Rolls-Royce, said: "We believe that this agreement will provide Bergen Engines and its skilled workforce with a new owner able to take the business on the next step of its journey.

“The sale of Bergen Engines is a part of our ongoing portfolio management to create a simpler, more focused group and contributes towards our target to generate at least £2bn from disposals, as announced last year."

The agreed sale includes the Bergen Engines factory, service workshop and foundry in Norway; engine and power plant design capability; and a global service network spanning more than seven countries.

Bergen Engines employs more than 900 people worldwide including 650 in the main factory in Hordvikneset.

Anthony Langley, chairman and CEO of Langley Holdings, said: "We are very pleased to have reached this agreement with Rolls-Royce.

“The acquisition of Bergen Engines is a strategic step in the development of our power solutions division, and I am looking forward to welcoming the 900 plus employees of Bergen Engines to our family of businesses."

The agreement is subject to the satisfaction of certain closing conditions. Rolls-Royce has notified the Norwegian government of the agreed sale and effective completion is scheduled for December 31, 2021.

Jon Erik Røv, managing director of Bergen Engines, said: "Today marks the beginning of a new era for Bergen Engines.

“Through the investments made by Rolls-Royce in our business, together with our dedicated and skilled workforce, and worldwide reputation for quality, I'm confident that Bergen Engines will prosper with Langley Holdings as our new owners."

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