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Rolls-Royce has announced the closing of a sale worth € 63million (£ 53million).

The company sold its Bergen Engines business to Langley Holdings in an attempt to rebuild its balance sheet after its goal of making at least £ 2bn from asset sales.

With the sale proceeds of 91 million euros, as well as the 16 million euros of cash held within Bergen Engines which has now been retained by Rolls-Royce, the sale will support the company’s ambition to return to an investment grade credit profile.

Warren East, CEO of Rolls-Royce, said: “We believe this agreement will provide Bergen Engines and its skilled workforce with a new owner who can take the company to the next step in its journey. The sale of Bergen Engines is part of our ongoing portfolio management to create a simpler and more focused group and contributes to our goal of generating at least £ 2bn from divestitures, as announced last year. “

Langley Holdings, a family-owned industrial engineering and manufacturing company, employs approximately 5,600 people. Its main divisions are based in Germany, Norway, France, Italy and the United Kingdom, with a substantial presence in the United States and over 90 subsidiaries worldwide.

Anthony Langley, Chairman and CEO of Langley Holdings plc, said: “The acquisition of Bergen Engines is a strategic step in the development of our Power Solutions division, and I look forward to welcoming the 900 and more employees of Bergen Engines. in our family of companies. “

Bergen Engines, which employs more than 900 people worldwide, generated sales of around € 200 million last year. It will operate as a stand-alone business. The sale of Bergen follows an earlier deal with Russian group TMH which was blocked by the Norwegian government in March 2021.

Jon Erik Røv, Managing Director of Bergen Engines, said: “Thanks to the investments Rolls-Royce has made in our company, along with our dedicated and skilled workforce and our worldwide reputation for quality, I am confident that Bergen Engines will flourish with Langley Holdings as the new owners.

In 2020, Rolls-Royce struggled with a loss of £ 4 billion as the global aviation industry fell amid the pandemic.

Rolls-Royce recently announced that it has secured funding to present plans to create low-cost, low-carbon nuclear power technology.

The derby maker’s Small Modular Reactor (SMR) will launch after a three-year £ 195million investment through a consortium it has formed with BNF Resources UK Limited and Exelon Generation.

The funding will enable the company to secure a £ 210million grant from UK research and innovation funding, first announced by the Prime Minister in the Ten Point Plan for a Green Industrial Revolution .