Rolls-Royce has signed an agreement to sell its Bergen Engines medium speed liquid fuel and gas engines business to global engineering group Langley Holdings for an enterprise value of €63 million. 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 our ongoing portfolio management to create a more focused group and follows a strategic review of Bergen Engines. It contributes towards the company’s target to generate at least £2 billion from disposals, as announced last year. Sale proceeds of €70 million from the transaction together with €40 million 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.
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. In 2020, the business generated revenues of approximately €200 million with the assets and liabilities of the business presented as held for sale in the Rolls-Royce Holdings consolidated balance sheet.
Langley Holdings, headquartered in the U.K., is a diverse, global, engineering group with its main operations in Germany, Italy, France and the U.K., alongside a substantial presence in the U.S. The group employs around 4,600 people. Its activities range from the production of uninterruptible power systems, packaging machinery and electric motors and generators, to the manufacture of safety-critical mechanical handling equipment including for the U.K. Ministry of Defence’s submarine missile loading facility at Coulport, Scotland. Established in 1975 by Anthony Langley, Chairman and CEO, the Langley Group is financially independent and remains under family ownership. Bergen Engines will be operated by Langley Group as a stand-alone business.
