Rolls secures final clearance for sale of ITP Aero to Bain

Aug 3, 2022 | News

Rolls-Royce said on Wednesday it had secured the final regulatory clearance for the sale of ITP Aero to investors led by Bain Capital, with the completion of the $1.8bn deal expected in the coming weeks.

The approval, from the Spanish government, means Rolls has completed its disposal programme, raising at least $2.4bn.

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

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The engineer agreed last September to sell the Spanish business, which makes the engines for the Eurofighter Typhoon, to US private equity firm Bain Capital.

Rolls-Royce, like many others in the aerospace sector, was hit hard by the pandemic. In response, it has cut jobs and shored up its balance sheet through a share sale, loans and a planned £2bn of disposals. ITP Aero is the biggest sale announced to date.

Bain Capital has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity has a global team of more than 275 investment professionals which creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare and technology.

The firm has offices on four continents and has made primary or add-on investments in more than 1,000 companies since its inception. Among these investments has been partnering with dynamic healthcare companies dedicated to quality, access, innovation and improved patient outcomes, and with scale and disruptive technology businesses where the firm’s in depth knowledge of fundamental trends, insight into evolving customer dynamics, and vertical market expertise helps accelerate growth.

In addition to private equity, Bain Capital invests across asset classes including credit, public equity, venture capital, real estate and insurance, managing approximately $150bn in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.

Source: Reuters

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