The sale of the company’s Naval Handling business (also to FMD), located in Peterborough, Ontario, Canada, is expected to close at a later date.
Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which provide power-dense solutions for naval propulsion and onboard power needs.
The sale of the Naval Propulsors and Handling businesses are part of the transformation of Rolls-Royce, which started in 2023. That transformation is based on a clear and granular strategy, focusing Defense on strategic growth in the areas of combat, transport and submarines.
The company has also been investing in its core markets in the United States. Earlier this year, Rolls-Royce announced an expansion of its power systems operations in Mankato, Minnesota to support data center growth. Over the past decade, Rolls-Royce has invested more than $1.5 billion in the United States, including $1bn in its Defense operations in Indianapolis, Indiana to support new programs like the U.S. Air Force B-52 Commercial Engine Replacement Program and the U.S. Army MV-75 FLRAA program.