By Alex Glenn • 27 September 2021 • 15:02
Rolls-Royce to sell Spanish ITP Aero arm for a staggering 1.7bn euros. Rolls-Royce watched their shares leap by more than 10 per cent due to the announcement.
Rolls-Royce will be selling their Spanish ITP Aero business to a group headed by the private equity giant Bain. This is just the latest move in their disposal programme, as the company tries to raise funds.
If completed as planned the sale will be finished during the first half of 2022. The sale will boost the firm’s balance sheet.
Rolls-Royce chief executive, Warren East, has said that the sale is a “significant milestone”. The company are trying to raise £2 billion, and this is a major step towards that.
The agreement is expected to benefit both ITP and Rolls-Royce too. East commented: “This agreement represents an attractive outcome for both Rolls-Royce and ITP Aero and we are also grateful to the Spanish and Basque governments for the constructive discussions we have held with them during the process.
“The creation of an independent ITP Aero is a great opportunity for the company, its people and other stakeholders.”
He added: “A financially, technologically, and industrially strong ITP Aero is also vital to Rolls-Royce.”
ITP Aero’s chief executive Carlos Alzola commented on the sale and said: “This transaction is a significant moment for all of us at ITP Aero.
“We will be able to further strengthen our position in the aerospace industry, continue to provide high levels of innovation and service to our customers and expand our business to capture significant growth opportunities.
“All of us at ITP Aero are eager to start the next chapter of our story as an independent company with a strong strategic plan and financial support behind us, building on our 30 years of success, to create a global leader in aerospace that is headquartered in the Basque Country in Spain.”
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Originally from the UK, Alex is based in Almeria and is a web reporter for The Euro Weekly News covering international and Spanish national news.
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