Rolls-Royce Buys Rest of ITP for EUR720 Million

By Rory Gallivan

LONDON--Rolls-Royce Holdings PLC (RR.LN) is buying the 53.1% of aerospace group Industria de Turbo Propulsores SA that it doesn't already own from Spanish engineering company SENER Grupo de Ingenieria SA for 720 million euros ($796 million).

The acquisition "strengthens Rolls-Royce's position on its Civil Aerospace large-engine growth programmes," Rolls-Royce said

Rolls-Royce said it will pay for the acquisition over the next two years, with up to 50% payable in Rolls-Royce shares.

"ITP has been a trusted partner for Rolls-Royce over many years as well as working for other engine manufacturers," said Rolls-Royce Chief Executive Warren East.

"This investment will add to our aerospace capability, with excellent facilities, services and products, to generate additional opportunities for profitable growth," he added.

Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

July 11, 2016 02:45 ET (06:45 GMT)

Rolls Royce (PK) (USOTC:RYCEY)
Historical Stock Chart
From Jun 2024 to Jul 2024