Rolls-Royce and Daimler agree on valuation of Daimler's equity interest in Rolls-Royce Power Systems
Wednesday, 16 April 2014
Rolls-Royce and Daimler today announce that they have agreed the valuation of Daimler's 50% equity interest in the joint venture Rolls-Royce Power Systems (RRPS). Both parties have determined the fair market value of Daimler's shares at EUR 2.43 billion. The transaction is expected to complete within the next five months and is subject to the usual regulatory approvals.
This follows the announcement on March 7, 2014 that the Board of Management of Daimler AG had decided to exercise the put option relating to its shareholding in RRPS.
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: "We have enjoyed an outstanding working relationship with Daimler and this agreement represents a good outcome for both of our companies. Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business. It has world class technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division."
Dr. Wolfgang Bernhard, Daimler's Board of Management Member for trucks and buses, added: "We are pleased to reach an agreement with Rolls-Royce in such a short period of time. This underlines the profound partnership established during the past years. Irrespective of the ownership situation, we will keep connections to RRPS based on our existing supplier relationship."
- 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 business segments address 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. Rolls-Royce currently has 50% ownership of Rolls-Royce Power Systems (RRPS) which is subject to today's announcement.
- Rolls-Royce has customers in more than 120 countries, 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.
- Our business is focused on the 4Cs:
- Customer – placing the customer at the heart of our business
- Concentration – deciding where to grow and where not to
- Cost – continually looking to increase efficiency
- Cash – improving financial performance.
- 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.
- In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.
- Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
- 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 through our worldwide training programmes.