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Rolls-Royce Holdings PLC on Wednesday said the Spanish government has approved the €1.7 billion sale of its ITP Aero subsidiary to a consortium of investors led by Bain Capital Private Equity.
Back in September last year, the engineering group announced the €1.7 billion sale as part of its disposal programme to help rebuild its balance sheet. In 2020, Rolls-Royce had said it would seek to raise at least £2 billion by selling assets after the coronavirus crisis ravaged the company's balance sheet.
ITP Aero was founded in 1989 for the European defence programme Eurofighter. It is an aeronautical engine company, currently responsible for maintaining engines for the Spanish armed forces. It is headquartered in Zamudio, Bizkaia in Spain.
The buying consortium led by private equity firm Bain Capital also includes JB Capital and Sapa.
On Wednesday, Rolls-Royce said the sale is expected to be complete in the ‘coming weeks’, now that it has received approval of all relevant regulatory authorities.
‘ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes,’ it added.
Rolls-Royce shares were up 1.9% to 89.49 pence each in London early Wednesday.
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