The UK-based major engineering company Rolls-Royce is selling its Commercial Marine business to the Norwegian technology group Kongsberg Gruppen ASA.
The deal is expected to be completed in the first quarter of next year, subject to clearance from the regulatory authorities.
Rolls-Royce announced in January that Commercial Marine will be sold under its plan to focus on three core businesses, Civil Aerospace, Defence and Power Systems. Under the sale agreement signed by the two companies, the value of the enterprise has been put at £500mn and the net proceeds from the deal will range from £350mn to £400mn.
Commercial Marine has about 3,600 employees with the majority based in the Nordic region and in 2017, the business generated revenue of £817mn with an operating loss of £70mn. Kongsberg has around 7,000 employees and is represented in more than 25 countries. The sale includes propulsion, deck machinery, automation and control, the service network spanning more than 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.
The Rolls-Royce Ship Intelligence activities, including the pioneering technologies to enable remote and autonomous operation of commercial ships, are also included in the sale. Under the deal, Kongsberg will continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems and the Power Systems business 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 part of Rolls- Royce Defence.
With its headquarters in Kongsberg, the Norwegian company describes itself as “an international knowledgebased group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors.”