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Rolls-Royce To Sell Bergen Engines Business To Langley Holdings

Rolls-Royce (RYCEF.PK,RR.L,RYCEY.PK), on Wednesday, announced signing of an agreement to sell its Bergen Engines medium speed liquid fuel and gas engines business to global engineering group Langley Holdings plc for an enterprise value of €63 million.

The company noted that the agreed sale of Bergen Engines is a part of its ongoing portfolio management to create a more focused group and follows a strategic review of Bergen Engines. It contributes towards Rolls-Royce's target to generate at least £2 billion from disposals, as announced last year.

Langley is funding the deal, together with working capital requirements for the Bergen business going forward, from existing cash reserves.

Rolls-Royce would use the sale proceeds of €70 million from the transaction together with €40 million of cash currently held within Bergen Engines which is to be retained by Rolls-Royce, to help rebuild the Rolls-Royce balance sheet in support of its medium-term ambition to return to an investment grade credit profile.

Warren East, CEO of 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."

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