8th Jun 2012 07:00
8 June 2012 Rolls-Royce to acquire Aero Engine Controls
Rolls-Royce, the global power systems company, announces today that it will acquire the 50 per cent of shares it does not already own in Aero Engine Controls (AEC) a joint venture with Goodrich Corporation. AEC was established in January 2009 to combine the engine controls businesses of the two companies. The joint venture principally designs and manufactures engine control systems including electronic engine controllers, fuel pumps and fuel metering units for a wide range of Rolls-Royce engines and for a number of other programmes.
Engine control systems play an increasingly important part in enhancing the fuel efficiency and overall performance of modern jet engines. This acquisition will give Rolls-Royce full ownership of a critical capability that confers competitive advantage.
AEC employs around 1,400 people and has sites in Birmingham, Derby, and Belfast in the UK and in Indianapolis, USA.
The transaction has been agreed with United Technologies Corp (UTC), which is in the process of acquiring Goodrich. The acquisition of the remainder of the shares in AEC by Rolls-Royce will only proceed once the acquisition of Goodrich by UTC is complete and once any necessary antitrust approvals are obtained.
The transaction will have no material impact for Rolls-Royce on the current year's financial performance.
For further information, please contact:
Investors: Simon Goodson Director - Investor Relations Rolls-Royce plc Tel: +44 (0)20 7227 9237 [email protected] Media: Josh Rosenstock Director of External Communications Rolls-Royce plc Tel: +44 (0)20 7227 9163 [email protected]
Notes to editors
1. Rolls-Royce is a world-leading provider of power systems and services for
use on land, at sea and in the air, and has established a strong position
in global markets - civil aerospace, defence aerospace, marine and energy.
2. As a result of this strategy, Rolls-Royce has a broad customer base
comprising more than 500 airlines, 4,000 corporate and utility aircraft and
helicopter operators, 160 armed forces, more than 4,000 marine customers,
including 70 navies, and energy customers in more than 80 countries.
3. Annual underlying revenues were £11.3 billion in 2011, of which more than
half came from the provision of services. The firm and announced order book
stood at £62.2 billion at 31 December 2011, providing visibility of future
levels of activity.
4. Rolls-Royce employs more than 40,000 people in offices, manufacturing and
service facilities in over 50 countries. Over 11,000 of these employees are
engineers.
5. In 2011, Rolls-Royce invested £908 million on research and development, two
thirds of which had the objective of further improving the environmental
performance of its products, in particular reducing emissions.
6. Rolls-Royce supports a global network of 28 University Technology Centres,
which connect the company's engineers with the forefront of scientific
research.
7. The Group has a strong commitment to apprentice and graduate recruitment
and to further developing employee skills.
8. Rolls-Royce Goodrich Engine Control Systems Limited trades as Aero Engine
Controls and is a 50:50 joint venture between Rolls-Royce and Goodrich
9. Aero Engine Controls was designed as a break-even business, its profit
before tax was £0.2m at 31 December 2011.
10. The cost of the acquisition will be a cash amount determined by 50% of the
audited net asset value of AEC once the acquisition of Goodrich by UTC is complete. For illustrative purposes, at the end of 2011, AEC had gross assets of £116m and net assets of £8m. In addition Rolls-Royce will assume full responsibility for AEC's external debt of c.£54 million at the end of 2011 as well as AEC's defined benefit pension scheme (c.£1 million deficit at the end of 2011).
XLONRelated Shares:
Rolls-Royce