Rolls-Royce snaps up Spanish component specialist ITP

Rolls-Royce has agreed to pay €720m to complete the full takeover of Spanish aero engine component manufacturer Industria de Turbo Propulsores (ITP).

The FTSE 100 company, which currently owns a large minority stake in the profitable Bilbao-based business, will purchase the outstanding 53.1% shareholding in ITP from SENER Grupo de Ingeniería in eight instalments over a two-year period.

ITP, which made profit after tax of €59m from €710m revenue in 2015, has partnered with Rolls-Royce on all Trent engine programmes, manufacturing low pressure turbines, and is currently working with the UK company in researching new turbine technology for the next generation UltraFan engine.

ITP has research and development expertise, particularly in the field of aerospace super-alloys, and engine maintenance capabilities.

"ITP has been a trusted partner for Rolls-Royce over many years as well as working for other engine manufacturers," said Warren East, Rolls-Royce CEO.

"This investment will add to our aerospace capability, with excellent facilities, services and products, to generate additional opportunities for profitable growth. We look forward to forging a closer and more productive future together, and to welcoming ITP's employees into Rolls-Royce."