Rolls-Royce is taking further steps to divest its portfolio after agreeing to the £500mn sale of its commercial marine business to Kongsberg.
Employing 3,600 workers, Commercial Marine generated annual revenues of £817mn and its sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries.
Kongsberg, the Norwegian firm which delivers high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors, is represented in more than 25 countries with approximately 7,000 employees and has a turnover of NOK 14.5bn (2017).
"This transaction builds on the actions we have taken over the last two years to simplify our business," said Warren East, Chief Executive of Rolls-Royce. "The sale of our Commercial Marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers."
Geir Håøy, Chief Executive and President of Kongsberg, said: "The acquisition of Rolls-Royce Commercial Marine makes us a more complete supplier to the maritime industry. The maritime industry is becoming increasingly globalised and is undergoing considerable technological and market driven changes. With this acquisition we will strengthen our strategic position with shipowners, shipyards and other customers and partners."
The transaction has been approved by the boards of both Rolls-Royce and Kongsberg and is expected to close in Q1 2019, subject to clearance from the regulatory authorities.