Engineering news
Rolls-Royce is to acquire the outstanding 53% shareholding in Industria de Turbo Propulsores from SENER Grupo de Ingeniería for €720 million (£616.4 million).
ITP is a global company which designs and manufactures aero engine components for a range of customers. It has partnered with Rolls-Royce on all Trent programmes, manufacturing low pressure turbines, and is currently researching new intermediate pressure turbine technology for the next generation UltraFan engine alongside Rolls-Royce. It has research and development expertise, particularly in the field of aerospace super-alloys, and engine maintenance capabilities. ITP is headquartered in Bilbao, Spain, and employs more than 3,000 people in facilities in Spain, Mexico, India, Malta, US and the UK.
Rolls-Royce said the acquisition strengthens its position on its civil aerospace large engine growth programmes by capturing significant additional value from its long-term aftermarket revenues, including the high volume Trent 1000 and Trent XWB engines, where ITP has played a key role as a risk and revenue sharing partner. It also enhances the group's manufacturing and services capabilities and adds value to the defence aerospace business, particularly on the TP400 and EJ200 programmes, Rolls-Royce added.
Warren East, Rolls-Royce chief executive, said: "We welcome the opportunity to acquire the outstanding stake in ITP. ITP has been a trusted partner for Rolls-Royce over many years as well as working for other engine manufacturers.
“This investment will add to our aerospace capability, with excellent facilities, services and products, to generate additional opportunities for profitable growth. We look forward to forging a closer and more productive future together, and to welcoming ITP's employees into Rolls-Royce.”
ITP's 2015 revenue was €710 million, its earnings before tax was €116 million and profit after tax was €59 million.