Rolls-Royce has sold the bulk of its Vickers Turbine Components business to Royal Bank Private Equity (RBPE) for £74 million.
Under the agreement, RBPE will take over a number of UK and US firms, employing approximately 1,220 people, which make up the majority of Vickers Turbine Components.
Two companies, Ross Catherall with 240 employees based in Denby, near Derby and Vickers Pressings, with 165 employees based in Newcastle upon Tyne, will remain with Rolls-Royce.
The businesses being sold specialise in precision-engineered products for the automotive, aerospace and industrial gas turbine markets and were acquired by Rolls-Royce in November 1999 as part of its acquisition of Vickers.
The net assets of the businesses sold are £60 million and £11 million of goodwill will be written off as part of this transaction.
Businesses being sold include Vickers Precision Machining, which has 300 employees based in Crewe, Vickers Aerospace Components with 200 employees based in Shrewsbury, Vickers Airmotive, with 45 employees based in Shrewsbury, Ross & Catherall with160 employees based in Killamarsh, near Sheffield, Trucast with 310 employees based in the Isle of Wight, Trucast with 95 employees based in Newberry, South Carolina and Certified Alloy Products with 110 employees based in Long Beach, California.