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Rolls-Royce Holdings PLC on Thursday said its €1.8 billion sale of ITP Aero is now complete.
Shares in Rolls-Royce were up 5.7% to 79.43 pence each in London on Thursday around midday.
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.
Rolls-Royce said it will use the proceeds to reduce its debt with the immediate repayment of its £2 billion loan.
The company also noted that the sale of ITP Aero completes its disposal programme, which was announced in August 2020.
‘ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes,’ Rolls-Royce added.
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