Rolls-Royce to sell its UK based business for £12.6m
Rolls-Royce is set to sell its Michell Bearings business to British Engines Limited for a cash consideration of £12.6m. Subject to licence consents, the sale will be completed in the autumn, the Company said Tuesday in a press release.
Michell Bearings has been part of the Rolls-Royce Marine business for the past 15 years and is a premium designer and manufacturer of hydrodynamic bearings for a wide range of marine and industrial applications.
Michell Bearings consists of a business based in the UK, located in Newcastle-upon-Tyne, and a 51% shareholding in Michell Bearings (India) Pvt Ltd, a non-wholly owned subsidiary company based in Bangalore.
The sale of its unit will allow Rolls-Royce to concentrate on its core Marine business, said President Mikael Makinen, Rolls-Royce, Marine.
Consideration is subject to the value of cash generated by Michell Bearings until the sale completes. The sale proceeds will be utilised for working capital requirements. Michell Bearings reported gross assets of £13.3m (before minority interests) as at 31 December 2014 and generated consolidated profits (before minority interests) of £5.9m in the year to 31 December 2014.
Rolls-Royce is a world leader in marine solutions, providing products, service and expertise to more than 30,000 vessels in the offshore, merchant, naval surface and submarine markets. It designs ships and its product range includes propulsion systems featuring diesel engines and gas turbines, propellers, thrusters and water jets. Rolls-Royce also provides manoeuvring and stabilising systems and deck machinery. The company employs over 39,000 skilled people, including 11,000 engineers, in offices, manufacturing and service facilities in over 50 countries.
