Rolls-Royce Sets to Sell Production of Components for Eurofighter Typhoon
The British company Rolls-Royce plc, which makes engines and other equipment for the aviation, marine and defense industries, is exploring the possibility of an urgent sale of the ITP Aero division, which makes components for the Eurofighter Typhoon fighters and other aircraft, wrote The Daily Telegraph about this, citing sources.
The newspaper reports that Rolls-Royce is in talks to sell the ITP Aero while they are in their early stages. According to the sources, there are several investment funds among potential buyers, including KKR, Blackstone and Carlyle.
Rolls-Royce wants to sell the division amid declining demand for aircraft during the pandemic and a corresponding drop in the company’s revenues, usually generated from engines sales and maintenance and repair services. Rolls-Royce announced plans to cut nearly 20% of its employees in May.
ITP Aero, which manufactures parts for engines for fighters, helicopters and marine vessels, is headquartered in Spain; the main production is located there. The company was established in 1989 as a joint venture between Rolls-Royce and the Spanish company SENER. Since 2016, it has been wholly owned by Rolls-Royce.
Last year, the UK company already tried to sell its stake in ITP Aero to the Spanish company Indra Sistemas, then ITP Aero was valued at € 1.5 billion. According to The Daily Telegraph, now, due to the crisis in the aviation industry, the unit may cost significantly less, although Rolls -Royce may try to add some other assets to the deal to increase its value.