Rolls-Royce has agreed a £1.45bn deal to sell its ITP Aero business to a private equity-led consortium.
Bain Capital is leading a group of Spanish and Basque companies, including SAPA and JB Capital, in a deal that will see ITP Aero remain a supplier to Derby-based Rolls-Royce.
ITP Aero will be an independent company led by current CEO Carlos Alzola, with headquarters and decision making remaining in Zamudio, Spain.
Earlier this year, the former Rolls-Royce site in Hucknall, Nottingham, became part of the ITP Aero business, with a plan to include the site “short term”.
The proposed sale is a key part of Rolls-Royce’s divestiture program, announced on August 27, 2020, to raise proceeds of at least £2 billion.
Warren East, CEO of Rolls-Royce, said: “Today’s announcement is an important milestone for our divestiture program as we strive to strengthen our balance sheet, in support of our medium-term ambition. to return to an investment grade credit profile. This agreement represents an attractive outcome for Rolls-Royce and ITP Aero and we are also grateful to the Spanish and Basque governments for the constructive discussions we have had with them during the process. The creation of an independent Aero ITP is a great opportunity for the company, its employees and other stakeholders. A financially, technologically and industrially sound ITP Aero is also vital for Rolls-Royce. The company will remain a key supplier and strategic partner for decades to come. We believe we have selected new owners willing to support the business for the long term and build on its successes. We look forward to continuing to work closely with Carlos and our colleagues at ITP Aero in the future. »
Carlos Alzola, CEO of ITP Aero, said: “This transaction is an important moment for all of us at ITP Aero. We will be able to further strengthen our position in the aerospace industry, continue to deliver high levels of innovation and service to our customers, and expand our business to seize significant growth opportunities. At ITP Aero, we are all eager to begin the next chapter of our history as an independent company with a solid strategic plan and financial backing behind us – building on our 30 years of success – to create a global leader aerospace company headquartered in the Basque Country in Spain. Our success is based on the efforts of all our colleagues around the world and I would like to thank each of them for their continued dedication.
Ivano Sessa, Managing Director, and Tobias Weidner, Director of Bain Capital Private Equity, said: “ITP Aero has an excellent track record in a sector that is vital to the global economy, with attractive long-term growth potential. . We see significant potential in accelerating ITP Aero’s growth trajectory and investments in new technologies. With our partners SAPA and JB Capital, we believe we bring a unique understanding and capability to support ITP Aero. We look forward to working with ITP Aero’s management, employees and other stakeholders, including the Spanish and Basque governments, to realize ITP Aero’s significant growth potential as an independent company.
During the fiscal year ended December 31, 2020, ITP Aero recorded revenue of €735 million and underlying EBIT of €40 million.