Rolls-Royce has sold its commercial marine business to Kongsberg for an enterprise value of GB£500m and net proceeds of around GB£350-400m.
The sale includes propulsion; deck machinery; automation and control; a service network spanning more than 30 countries; and ship design capability. 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.
Geir Håøy, chief executive and president of Kongsberg, said: “The acquisition of Rolls-Royce Commercial Marine makes us a more complete supplier to the maritime industry. The maritime industry is becoming increasingly globalised and is undergoing considerable technological and market driven changes. With this acquisition we will strengthen our strategic position with shipowners, shipyards and other customers and partners.”
Engines retained
Kongsberg will continue to have access to products from Bergen Engines, which remains part of Rolls-Royce Power Systems. Kongsberg will also be a partner and supplier to Rolls-Royce’s defence business for the supply of commercial marine products used on naval vessels.
Rolls-Royce Power Systems will continue to supply MTU engines to a range of customers in the marine market including operators of commercial vessels and yachts. The naval gas turbine propulsion activities will continue to be a core part of Rolls-Royce defence.
In 2017, Rolls-Royce’s commercial marine business generated revenue of GB£817m with an operating loss of £70m.
