Rolls-Royce signs agreement to sell Bergen Engines business
Rolls-Royce 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 ongoing portfolio management to create a more focused group and follows a strategic review of Bergen Engines. Rolls-Royce is aiming to raise 2 billion pounds from disposals by 2022 as part of plans to repair finances that have been affected by the pandemic. Airlines flew less, cutting one of Rolls's main sources of income. Sale proceeds of €70m from the transaction together with €40m of cash currently held within Bergen Engines which will 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.
“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.” Anthony Langley, Chairman and CEO of Langley Holdings plc
“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.” Jon Erik Røv, Managing Director, Bergen Engines
About Bergen Engines
Bergen Engines AS is a manufacturer of medium-speed engines for marine and land applications. Their engines have a power output ranging between 1,5 to 12 MW. All the product development and production are done at their facilities in Åsane in Bergen, Norway. They employ 700 people in Norway and 250 people in their service offices around the world. Bergen Engines AS started engine production in 1946 as part of “Bergen Mekaniske Verksted” and since 1999 have been part of Rolls-Royce plc. In the marine market, Kongsberg Maritime is the exclusive distributor of our engines for commercial marine applications. These applications include fishing vessels, ferries, offshore support vessels and cruise ships among others. On land, engines are used for power generation and combined heat and power.
