# Rolls-Royce signs agreement to sell its Bergen Engines business to Langley Holdings

- Link: https://www.directorstalkinterviews.com/rolls-royce-signs-agreement-to-sell-its-bergen-engines-business-to-langley-holdings/4121014361
- Published: 2021-08-04T07:23:38+01:00
- Author: Amilia Stone

**Rolls-Royce Holdings plc **(LON:RR) has signed an agreement to sell its Bergen
Engines medium speed liquid fuel and gas engines business to global engineering 
group Langley Holdings plc for an enterprise value of €63m. Langley is funding the
deal, together with working capital requirements for the Bergen business going forward,
from existing cash reserves.

The agreed sale of Bergen Engines is a part of our ongoing portfolio management 
to create a more focused group and follows a strategic review of Bergen Engines.
It contributes towards our target to generate at least £2bn from disposals, as announced
last year. Sale proceeds of €70m from the transaction together with €40m of cash
currently held within Bergen Engines which is to be retained by Rolls-Royce, will
be used to help rebuild the Rolls-Royce balance sheet in support of our medium-term
ambition to return to an investment grade credit profile.

The agreed sale includes the Bergen Engines factory, service workshop and foundry
in Norway; engine and power plant design capability; and a global service network
spanning more than seven countries. Bergen Engines employs more than 900 people 
worldwide including 650 in the main factory in Hordvikneset. In 2020, the business
generated revenues of approximately €200m with the assets and liabilities of the
business presented as held for sale in the Rolls-Royce Holdings plc consolidated
balance sheet.  

Langley Holdings, headquartered in the UK, is a diverse, global, engineering group
with its main operations in Germany, Italy, France and the UK, alongside a substantial
presence in the US. The group employs around 4,600 people. Its activities range 
from the production of uninterruptible power systems, packaging machinery and electric
motors and generators, to the manufacture of safety-critical mechanical handling
equipment including for the UK Ministry of Defence’s submarine missile loading facility
at Coulport, Scotland. Established in 1975 by Anthony Langley, Chairman and CEO,
the Langley Group is financially independent and remains under family ownership.
Bergen Engines will be operated by Langley Group as a stand-alone business.

The agreement is subject to the satisfaction of certain closing conditions. We have
notified the Norwegian government of the agreed sale and effective completion is
scheduled for the 31 December 2021. Bergen Engines’ long-term relationship with 
Kongsberg Maritime, distributor of Bergen medium speed engines to the maritime market,
is planned to continue as is.

> **Anthony Langley, Chairman and CEO of Langley Holdings plc, said**: “We are very
> pleased to have reached this agreement with Rolls-Royce. The acquisition of Bergen
> Engines is a strategic step in the development of our power solutions division,
> and I am looking forward to welcoming the 900 plus employees of Bergen Engines
> to our family of businesses.”

> **Jon Erik Røv, Managing Director, Bergen Engines, said**: “Today marks the beginning
> of a new era for Bergen Engines. Through the investments made by Rolls-Royce in
> our business, together with our dedicated and skilled workforce, and worldwide
> reputation for quality, I’m confident that Bergen Engines will prosper with Langley
> Holdings as our new owners.”

> **Warren East, CEO of Rolls-Royce, said**: “We believe that this agreement will
> provide Bergen Engines and its skilled workforce with a new owner able to take
> the business on the next step of its journey. The sale of Bergen Engines is a 
> part of our ongoing portfolio management to create a simpler, more focused group
> and contributes towards our target to generate at least £2bn from disposals, as
> announced last year.”

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