Rolls-Royce has announced the completion of the sale of ITP Aero to a consortium of investors led by Bain Capital Private Equity, at an enterprise value of approximately €1.8 billion. The completion of the transaction, which was announced on 27 September 2021, follows the announcement on 3 August 2022 of approval of the transaction from the Spanish government.
Sale proceeds were €1.6 billion. In addition a dividend of €0.1bn was paid shortly prior to completion. The proceeds will be used to reduce debt with the immediate repayment of our £2 billion loan, which is supported by an 80% guarantee from UK Export Finance, helping to rebuild the Rolls-Royce balance sheet in support of our ambition to return to an investment grade credit profile in the medium term. The sale of ITP Aero completes the disposal programme we announced on 27 August 2020.
ITP Aero will remain a key strategic supplier and partner for Rolls-Royce across both Civil Aerospace and Defence programmes.
Rolls-Royce pioneers the power that matters to connect, power and protect society. We have pledged to achieve net zero greenhouse gas emissions in our operations by 2030 (excluding product testing) and joined the UN Race to Zero campaign in 2020, affirming our ambition to play a fundamental role in enabling the sectors in which we operate achieve net zero carbon by 2050.
Rolls-Royce has customers in more than 150 countries, comprising more than 400 airlines and leasing customers, 160 armed forces and navies, and more than 5,000 power and nuclear customers.
Annual underlying revenue was £10.95 billion in 2021, underlying operating profit was £414m and we invested £1.18 billion on research and development. We also support a global network of 28 University Technology Centres, which position Rolls-Royce engineers at the forefront of scientific research.