11th Jul 2016 06:09
LONDON (Alliance News) - Engineer Rolls-Royce Holdings PLC on Monday said it has agreed to acquire the other 53.1% stake in Spanish aerospace components firm Industria de Turbo Propulsores SA it does not already own for EUR720.0 million.
Rolls-Royce will acquire the stake from SENER Grupo de Ingeniería SA and said the deal will strengthen its position on large engine programmes in its civil aerospace operations by growing aftermarket revenue. In addition, it will boost the group's defence aerospace business.
Industria de Turbo Propulsores, or ITP, is based in Bilbao, Spain and design and manufacturers aerospace components. In 2015, it made a pretax profit of EUR59.0 million on revenue of EUR710.0 million.
"We welcome the opportunity to acquire the outstanding stake in ITP. ITP has been a trusted partner for Rolls-Royce over many years as well as working for other engine manufacturers," said Rolls-Royce Chief Executive Warren East.
"This investment will add to our aerospace capability, with excellent facilities, services and products, to generate additional opportunities for profitable growth," East added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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