Spanish Government Approves Sale of ITP Aero

(04 August 2022, 12:30 +07)  The Spanish government has approved the sale of ITP Aero to a consortium of investors led by Bain Capital Private Equity.

As approval has now been received from all relevant regulatory authorities, the completion of the transaction, at an enterprise value of approximately €1.8 billion, is expected in the coming weeks.

This sale, which was announced on 27 September 2021, completes Rolls-Royce's disposal programme announced on 27 August 2020, to raise proceeds of at least £2 billion.

The acquisition was conditional on reaching agreement with the Spanish government, which had to authorise the operation as it was a foreign investment in a strategic company involved in projects critical to national defence.

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Carlos Alzola, CEO of ITP Aero, said, “For more than 30 years, ITP Aero has been a successful and market leading company in the aeronautical field. We are excited about our partnership with a Bain Capital led consortium, who have expressed a deep commitment to the Basque region, our team and to our continued growth. I would like to thank especially all ITP Aero employees for their support during the sale process period. We are looking forward to working with all stakeholders - customers, partners, government - in this very exciting period of industry change towards a more sustainable aviation, where ITP Aero will have a key role as a leader in Spain's aeronautical propulsion sector.”

Upon completion, sale proceeds (excluding any cash retained by Rolls-Royce) of approximately €1.7 billion will be used to help rebuild the Rolls-Royce balance sheet, in support of the company's ambition to return to an investment grade credit profile in the medium term.

ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes.

Warren East, CEO, Rolls-Royce, said, “The creation of an independent ITP Aero is a great opportunity for the company, its people and other stakeholders. A financially, technologically and industrially strong ITP Aero is also vital to Rolls-Royce. The company will remain a key strategic supplier and partner for decades to come.”

With customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces and navies, and more than 5,000 power and nuclear customers, Rolls-Royce reported an annual underlying revenue of £10.95 billion in 2021, underlying operating profit of £414m and the company invested £1.18 billion on research and development.

The company also supports a global network of 28 University Technology Centres.

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