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Bloomberg
Rolls-Royce Holdings Plc is seeking to raise as much as $700 million from the sale of a business that makes fuel injectors for diesel engines used in ships and industrial applications, people familiar with the matter said.
The UK jet-engine maker began showing L’Orange unit’s financial data to potential bidders in December and is closing in on an agreement, according to one of the people, who asked not to be named discussing confidential plans. Interested parties have included private-equity firms as well as strategic buyers in the sector.
The London-based company confirmed it’s reviewing strategic options for the business. Rolls-Royce intends to maintain close ties to L’Orange, either as an owner or key customer, and the review has no impact on the remainder of the Rolls-Royce Power Systems business, the company said.
At the asking price, the potential divestment would be the biggest since Chief Executive Officer Warren East took over at Rolls in 2015 and embarked on a turnaround effort that has eliminated layers of management and terminated less-successful products. L’Orange, based in Stuttgart, Germany, is part of a division that’s begun to see profit margins improve over the last year. L’Orange’s customers include marine-engine maker Wartsila OYJ.