ITP Aero supplies aeronautical components and engines and employs 4,300 staff at production sites in Spain, the UK, Mexico, Malta and India. In the year ended 31 December 2020, the company reported revenues of €735m and underlying EBIT of €40m. The sale of ITP Aero is in line with Rolls-Royce’s aim of raising at least £2bn to strengthen its balance sheet and fulfil a medium-term ambition to return to an investment grade credit profile.
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.”
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The proposed sale values ITP Aero at an enterprise value of approximately €1.8bn. The transaction has been approved by the board of Rolls-Royce and Bain Capital-led consortium members including SAPA and JB Capital and is expected to close in the first half of 2022.
The consortium's vision for an independent ITP Aero is to invest in the company's products, regions and customers.
Carlos Alzola, CEO, ITP Aero, said: "This transaction is a significant moment for all of us at ITP Aero. We will be able to further strengthen our position in the aerospace industry, continue to provide high levels of innovation and service to our customers and expand our business to capture significant growth opportunities.
“All of us at ITP Aero are eager to start the next chapter of our story as an independent company with a strong strategic plan and financial support behind us - building on our 30 years of success - to create a global leader in aerospace that is headquartered in the Basque Country in Spain.”
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