Rolls-Royce to quit Commercial Marine business
The Norwegian group Kongsberg will take over the division (excluding the navy one) as from 2019
Rolls-Royce signed an agreement to sell its Commercial Marine business, to Kongsberg, for £500 million and net proceeds of £350 to 400 million.
The transaction, approved by the boards of both companies, is expected to close in Q1 2019.
Headquartered in Kongsberg, Norway, the international knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors, is represented in 25 countries with 7,000 employees and has a turnover of NOK 14.5 billion (2017).
The move follows a strategic review by Rolls-Royce of its Commercial Marine operations announced in January 2018 and includes propulsion, deck machinery, automation and control, a service network spanning 30 countries and ship design capability - which to date has seen around 1,000 ships of Rolls-Royce design delivered to offshore, cargo, passenger and fishing vessel customers worldwide – and finally Rolls-Royce’s Ship Intelligence activities, which have seen the development of technologies to enable remote and autonomous operation of commercial vessels.
Kongsberg, through a trading arrangement, will continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems, of both diesel and gas medium-speed engines, and will also be an important partner and supplier to Rolls-Royce’s Defence business for the supply of Commercial Marine products used on Naval vessels.
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.
Commercial Marine has 3,600 employees, with the majority based in the Nordic region, and in 2017 generated revenue of £817 million with an operating loss of £70 million.