Home / Articles / Rolls Royce to sell marine unit for £500m

Rolls Royce to sell marine unit for £500m


Rolls-Royce has agreed to sell its loss-making commercial marine business to Norway’s Kongsberg Gruppen for £500m.

The Derby-based engineer said the sale of the business, which employs about 3,600 people mostly in the Nordic region, will generate net proceeds of around £350m to £400m.
The announcement comes as the maker of jet engines is in the process of cutting 4,600 jobs in an effort to improve its profitability. Its restructuring plan aims to save the FTSE 100 company about £400m a year.
Warren East, chief executive of Rolls-Royce, said: “This transaction builds on the actions we have taken over the last two years to simplify our business. The sale of our commercial marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers.”

In 2017, the commercial marine business generated revenue of £817m with an operating loss of £70m, Rolls Royce said in a statement. The disposal is expected to have a positive profit impact of around £50m.

Source: Sky

About Business Ideas UK

My name is Joel Bissitt. I have been an entrepreneur for 24 years and have run many small businesses across various sectors. For the last 10 years I have worked mainly within online media, franchising and small business start-ups.

Check Also

Another 40 Poundworld stores to close

Forty more Poundworld stores are to close later this month, leading to the loss …

Free Franchise Guide
close slider

Free Franchise Guide

 
Interested in buying a franchise? The our FREE Franchise Guide is a must! The guide contains lots of information to help you decide if franchising is right for you.
 

Yes, I'd like to join the Franchise UK mailing list.