Rolls-Royce completes Energy sale to Siemens

RNS Number : 4491Y

Rolls-Royce Holdings plc

01 December 2014

 



1 December 2014

ROLLS-ROYCE COMPLETES DEAL TO SELL ITS ENERGY GAS TURBINE AND COMPRESSOR BUSINESS TO SIEMENS

Rolls-Royce confirmed today that it has completed the deal to sell its Energy gas turbine and compressor business to Siemens for a £785 million cash consideration. The deal was originally announced on 6 May this year.

Rolls-Royce has also received a further £200 million for a 25 year licensing agreement, as previously announced, granting Siemens access to relevant Rolls-Royce aero-derivative technology for use in the 4 to 85 megawatt power output gas turbine range.

As announced on 19 June, Rolls-Royce will return the proceeds of the Energy sale to shareholders by way of a £1 billion share buyback. Further details will be announced as appropriate.

About Rolls-Royce Holdings plc

1.   Some parts of the Energy business will continue to be legally owned by Rolls-Royce on an interim basis. This will not affect the consideration paid and or the financials of the remaining business. The deal is subject to customary closing adjustments.

2.   Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Land & Sea. These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines. Aerospace comprises Civil Aerospace and Defence Aerospace. Land & Sea comprises Marine, Nuclear and Power Systems.

3.   Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,200 power and nuclear customers.

4.   Our business is focused on the 4Cs:

·     Customer - placing the customer at the heart of our business

·     Concentration - deciding where to grow and where not to

·     Cost - continually looking to increase efficiency

·     Cash - improving financial performance.

5.   Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £70.4 billion at 30 June 2014.

6.   In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.

7.   Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers. The Energy businesses being transferred to Siemens have just under 2,100 permanent employees.

8.   The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes. Globally we have over 1,000 Rolls-Royce STEM ambassadors who are actively involved in education programmes and activities; we have set ourselves a target to reach 6 million people through our STEM outreach activities by 2020.

For further information, please contact:

Investors:                                                                  Media:

Jilinda Crowley                                                           Richard Wray

Acting Director - Investor Relations                           Director of External Communications

Rolls-Royce plc                                                          Rolls-Royce plc

Tel: [phone]                                           Tel: [phone]

[e-mail]                                 [e-mail]

www.Rolls-Royce.com

 

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