LONDON: British aircraft engine maker Rolls-Royce announced Monday that it has sold its Spanish ITP Aero division for €1.7 billion.
Rolls-Royce said in a statement that it has agreed to sell the unit to a consortium led by private equity firm Bain Capital, as part of an ongoing asset disposal programme.
The news helped send Rolls-Royce shares soaring almost 11% on Monday.
ITP Aero is a Basque region-headquartered division which manufactures aircraft engines and turbines.
“Today’s announcement is a significant milestone for our disposal programme as we work to strengthen our balance sheet,” said chief executive Warren East.
The agreement was an “attractive outcome” and stressed that ITP Aero would remain a “key” strategic supplier and partner, he added.
The sale is part of Rolls-Royce’s ongoing divestment plans to raise up to £2.0 billion.