7 March 2014
ROLLS-ROYCE WELCOMES DAIMLER'S DECISION ON
ROLLS-ROYCE POWER SYSTEMS
Rolls-Royce welcomes the decision by the Board of Management of Daimler AG to exercise the put option relating to its 50% shareholding in Rolls-Royce Power Systems (RRPS). Rolls-Royce will acquire the shares from Daimler, which has been a 50-50 joint venture partner in RRPS since 2011. The option, which is subject to a formal valuation process, was valued at £1.9bn on the Rolls-Royce balance sheet at Dec 31st 2013. Rolls-Royce has ample liquidity to fund this purchase from existing cash and borrowing facilities.
RRPS, which previously operated as Tognum AG, is a world leader in reciprocating engines. It is headquartered in Friedrichshafen in Southern Germany and employs around 11,000 people.
John Rishton, CEO of Rolls-Royce said: "Rolls-Royce Power Systems has added scale and capability to our reciprocating engines business. It has outstanding technology, operates in long term growth markets and has proved a valuable addition to our Marine and Industrial Power Systems division."
Dr Dieter Zetsche, Chairman of the Board of Management of Daimler AG said: "After the very successful cooperation with Rolls-Royce and the positive development of RRPS, we are now taking the next logical step and are transferring our shares to our joint-venture partner. All parties involved will benefit from this move, especially RRPS and its workforce."
This transaction is expected to complete within the next 6-months and is subject to the usual regulatory approvals.
About Rolls-Royce plc
1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These businesses address their markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
2. Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy, Nuclear and Power Systems. Power Systems includes Rolls-Royce's 50% ownership of Rolls-Royce Power Systems (RRPS), a collaboration with Daimler AG. RRPS was fully consolidated in the results of Rolls-Royce plc for the first time in 2013.
3. Rolls-Royce has a broad customer base comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers in 120 countries.
4. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
5. Rolls-Royce employs over 55,000 people in offices, manufacturing and service facilities in 45 countries. Over 17,000 of these employees are engineers.
6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 29 University Technology Centres, which connect the company's engineers with the forefront of scientific research.
7. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices to our programmes worldwide.
For further information, please contact:
Media:
Richard Wray
Director of External Communications
Rolls-Royce plc
Tel: +44 (0)7974 918416
[email protected]
Investors:
Simon Goodson
Director - Investor Relations
Tel: +44 (0)20 7227 9237
[email protected]
www.Rolls-Royce.com
