Rolls-Royce confirms that completion of the sale of its fuel injector business, L’Orange, a wholly owned subsidiary of Rolls-Royce Power Systems, to Colorado-based Woodward Inc. took place on 1 June. The completion of the transaction, which was announced on 9 April, followed recent clearance from the German antitrust authorities.
Net proceeds totalled €673m after transaction costs and other adjustments and included a cash contribution reflecting 2018 trading prior to the date of completion. In 2017, L’Orange reported pro forma sales of €244m, pro forma underlying EBITDA of €74m, pro forma underlying operating profit of €64m and pro forma post-tax free cash flow of €51m. The results of L’Orange up to the date of completion will be classified as non-core in our 2018 results and the 2017 comparative will be restated to reflect this classification.
L’Orange, based in Stuttgart, Germany, will remain an important partner and supplier to Rolls-Royce Power Systems through a long-term supply agreement, with an initial term of 15 years.