In a statement, Rolls-Royce said the sale of Bergen Engines is part of its ‘ongoing portfolio management to create a more focused group’ and will help towards generating at least £2bn from disposals.
Bergen Engines, based in Hordvikneset, Norway, builds medium speed liquid and gas fuelled engines for the commercial marine sector and naval vessels, as well as for land-based power generation applications.
The sale includes the Bergen Engines factory, service workshop and foundry in Norway; engine and power plant design capability; and a global service network spanning over seven countries. Bergen Engines employs more than 900 people worldwide including 650 in the main factory in Hordvikneset. In 2020, the business generated revenues of approximately €200m, which is expected to rise to approximately €260m in 2021.
Warren East, CEO of Rolls-Royce, said: "We believe that this agreement will provide Bergen Engines and its skilled workforce with a new owner able to take the business on the next step of its journey.”
Headquartered in the UK, Langley Holdings is a diverse, global, engineering group with its main operations in Germany, Italy, France and the UK, alongside a substantial presence in the US. The group, which is made up of seven divisions and 17 manufacturing sites, employs around 4,600 people. Its activities range from the production of uninterruptible power systems, packaging machinery and electric motors and generators, to the manufacture of safety-critical mechanical handling equipment including for the UK Ministry of Defence's submarine missile loading facility at Coulport, Scotland.
Anthony Langley, chairman and CEO of Langley Holdings, said: "The acquisition...is a strategic step in the development of our power solutions division, and I am looking forward to welcoming the 900 plus employees of Bergen Engines to our family of businesses."
The agreement, which is subject to closing conditions, is scheduled for completion by 31 December 2021.