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Rolls-Royce gets go-ahead for £1.5bn ITP Aero sale

The engineering giant will hand over the Spanish business to a consortium of investors led by private equity firm Bain Capital.

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Rolls-Royce has had the green light from the Spanish government to sell its ITP Aero business for 1.8bn euros (£1.5bn) (Paul Ellis/PA)

Rolls-Royce has had the green light from the Spanish government to sell its ITP Aero business for 1.8bn euros (£1.5bn) (Paul Ellis/PA)

Rolls-Royce has had the green light from the Spanish government to sell its ITP Aero business for 1.8bn euros (£1.5bn) (Paul Ellis/PA)

Rolls-Royce has been given the green light by the Spanish government to sell its ITP Aero business for 1.8 billion euros (£1.5 billion), the engineering firm announced.

The engineering giant will hand over the Spanish business – which builds aircraft engines and turbines – to a consortium of investors led by private equity firm Bain Capital.

The sale completes the company’s plan to raise at least £2 billion and help rebuild its balance sheet, Rolls-Royce said on Wednesday.

The consortium acquiring ITP Aero, which has its headquarters in the Basque region, also includes Sapa and JB Capital.

Last year, Rolls-Royce chief executive Warren East called the sale a “significant milestone” in its cash-boosting disposal programme.

“This agreement represents an attractive outcome for both Rolls-Royce and ITP Aero and we are also grateful to the Spanish and Basque governments for the constructive discussions we have held with them during the process,” he said.

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“A financially, technologically and industrially strong ITP Aero is also vital to Rolls-Royce.”

The FTSE 100 firm – which took in £10.95 billion in revenue in 2021 – said ITP Aero will remain a key supplier and partner.

The announcement comes ahead of the firm reporting its half-year financial results on Thursday.


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