Rolls-Royce welcomes Daimler's decision on Rolls-Royce Power Systems
Friday, 7 March 2014
Rolls-Royce welcomes the decision by the Board of Management of Daimler AG to exercise the put option relating to its 50% shareholding in Rolls-Royce Power Systems (RRPS). Rolls-Royce will acquire the shares from Daimler, which has been a 50-50 joint venture partner in RRPS since 2011. The option, which is subject to a formal valuation process, was valued at £1.9bn on the Rolls-Royce balance sheet at Dec 31st 2013. Rolls-Royce has ample liquidity to fund this purchase from existing cash and borrowing facilities.
RRPS, which previously operated as Tognum AG, is a world leader in reciprocating engines. It is headquartered in Friedrichshafen in Southern Germany and employs around 11,000 people.
John Rishton, CEO of Rolls-Royce said: "Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business. It has outstanding technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division."
Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG said: "After the very successful cooperation with Rolls-Royce and the positive development of RRPS, we are now taking the next logical step and are transferring our shares to our joint-venture partner. All parties involved will benefit from this move, especially RRPS and its workforce."
This transaction is expected to complete within the next 6-months and is subject to the usual regulatory approvals.
- Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These businesses address their markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
- Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy, Nuclear and Power Systems. Power Systems includes Rolls-Royce's 50% ownership of Rolls-Royce Power Systems (RRPS), a collaboration with Daimler AG. RRPS was fully consolidated in the results of Rolls-Royce plc for the first time in 2013.
- Rolls-Royce has a broad customer base comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers in 120 countries.
- Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
- Rolls-Royce employs over 55,000 people in offices, manufacturing and service facilities in 45 countries. Over 17,000 of these employees are engineers.
- In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 29 University Technology Centres, which connect the company's engineers with the forefront of scientific research.
- The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices to our programmes worldwide.