Rolls-Royce sale of L'Orange goes through after German regulator approval

Rolls-Royce confirmed on Monday that completion of the sale of its fuel injector business, L'Orange, to Colorado-based Woodward took place on 1 June.

The FTSE 100 company said completion of the transaction, which was initially announced on 9 April, followed recent clearance from the German antitrust authorities.

It said 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 would be classified as non-core in Rolls Royce’s 2018 result, and the 2017 comparative would be restated to reflect that classification, the board explained.

“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,” the Rolls-Royce board said.