Rolls-Royce Holdings PLC (LSE:RR.) said the Spanish government approved the sale of its subsidiary, ITP Aero, to a consortium led by Bain Capital Private Equity.
The sale, which was announced last September, received its final regulatory authorisation from the Spanish government and will be completed in a few weeks at an enterprise value of roughly €1.8bn.
According to a statement, it also completes the company’s disposal programme, announced nearly two years, to raise roughly £2bn.
Upon completion of the sale, approximately €1.7bn will be “used to help rebuild the Rolls Royce balance sheet.”
ITP Aero is an engine and gas turbine manufacturer and was created as a joint venture between the FTSE 100 company and Spanish engineering conglomerate SENER in 1989.
Rolls Royce said it will continue to remain a key supplier and partner across both civil and defence programmes.