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ROLLS-ROYCE DIVESTS BERGEN ENGINES SUBSIDIARY

ROLLS-ROYCE DIVESTS BERGEN ENGINES SUBSIDIARY

Saturday, August 7, 2021 

Rolls-Royce has signed an agreement to sell its Bergen Engines medium speed liquid fuel and gas engines business to global engineering group Langley Holdings for an enterprise value of 63m.

Rolls-Royce says the sale is in line with its desire to create a more focused group and follows a strategic review of its Bergen subsidiary. The agreement includes the Bergen Engines factory, service workshop and foundry in Norway; engine and power plant design capability; and a global service network. Bergen Engines employs more than 900 people worldwide including 650 in the main factory in Hordvikneset. In 2020, the business generated revenues of approximately €200m. 

UK-headquartered Langley Holdings is financially independent and remains under family ownership. Bergen Engines will be operated by Langley Group as a stand-alone business.

The agreement is subject to the satisfaction of certain closing conditions. Bergen Engines’ long-term relationship with Kongsberg Maritime, distributor of Bergen medium speed engines to the maritime market, is planned to continue.

Warren East, CEO Rolls-Royce, said: “We believe that this agreement will provide Bergen Engines and its skilled workforce with a new owner able to take the business on the next step of its journey. The sale of Bergen Engines is a part of our ongoing portfolio management to create a simpler, more focused group and contributes towards our target to generate at least £2bn from disposals, as announced last year.”

Anthony Langley, Chairman and CEO, Langley Holdings, said: “We are very pleased to have reached this agreement with Rolls-Royce. The acquisition of Bergen Engines is a strategic step in the development of our power solutions division, and I am looking forward to welcoming the 900 plus employees of Bergen Engines to our family of businesses.”

Jon Erik Røv, MD Bergen Engines, said: “Today marks the beginning of a new era for Bergen Engines. Through the investments made by Rolls-Royce in our business, together with our dedicated and skilled workforce, and worldwide reputation for quality, I’m confident that Bergen Engines will prosper with Langley Holdings as our new owners.”

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