Rolls-Royce signs agreement to sell Commercial Marine business to Kongsberg
Rolls-Royce announced today that it has signed an agreement to sell its Commercial Marine business to KONGSBERG for an enterprise value of £500m.
KONGSBERG is an international, knowledge-based group delivering high technology systems and solutions to clients within the oil and gas industry, merchant marine, defence and aerospace sectors. KONGSBERG is represented in more than 25 countries with approximately 7,000 employees. In the maritime industry, the companies are complementary in their products, solutions and competence.
The move follows a strategic review by Rolls-Royce of its Commercial Marine operations announced in January 2018. The sale includes propulsion, deck machinery, automation and control, a service network spanning more than 30 countries and ship design capability, which to date has seen around 1,000 ships of Rolls-Royce design delivered to offshore, cargo, passenger and fishing vessel customers worldwide. Rolls-Royce’s Ship Intelligence activities, which have seen the rapid development of technologies to enable remote and autonomous operation of commercial vessels, are also included.
Mikael Makinen, Rolls-Royce President, Commercial Marine said: “Today marks the start of a new horizon for our Commercial Marine business. This deal comes at a time when the maritime industry is at the dawn of a new and exciting era where digital and electrical technologies will transform shipping. Rolls-Royce has been responsible for leading many of those technological advancements, and with combination of great people, market-leading technology and a desire by KONGSBERG to take this business to the next level, I am sure that this business will prosper in the years to come.
“We will now work closely with KONGSBERG as we go through the transition in the months ahead. I would like to pay tribute to the 3,600 Commercial Marine employees who have maintained absolute focus on their day jobs, winning business and maintaining the levels of support our customers expect.”
KONGSBERG will, through a trading arrangement, continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems. The Bergen engine range of both diesel and gas medium-speed engines is a key component that will enable KONGSBERG to be a leader in the continued development of integrated ship systems. KONGSBERG will also be an important partner and supplier to Rolls-Royce’s Defence business for the supply of Commercial Marine products used on Naval vessels.
The transaction is expected to close in Q1 2019, subject to clearance from the regulatory authorities.