ITP Aero

ITP Aero is a Spanish manufacturer of aircraft engines and gas turbines.

History

2021: Bain Capital Private Equity bought 100% ITP Aero

On September 27, 2021, Rolls-Royce announced the signing of a final agreement to sell 100% of ITP Aero to Bain Capital Private Equity, which heads a consortium of investors, for about $1.98 billion. The consortium includes the participation of Spanish co-investors SAPA and JB Capital.

The proposed sale is a key element of the Rolls-Royce sale program, announced on August 27, 2020 and aimed at generating revenue of at least $2.7 billion and corresponds to the company's strategy to reduce capital intensity while maintaining key long-term strategic supplies. The transaction was approved by Rolls-Royce's Board of Directors and members of the consortium and subject to certain closing conditions, including normal regulatory approvals.

Bain Capital Private Equity acquired 100% of ITP Aero

The consortium's vision for independent ITP Aero is to invest in the development of the company's products, regions and customers and further increase its status as the national champion of Spain. The partnership of ITP Aero with Bain Capital and the consortium will allow it to continue to advance its strategy and be a pioneer in the field of new technologies and world-class production based on a highly skilled labor force.

This agreement is an attractive outcome for both Rolls-Royce and ITP Aero, and we are also grateful to the Spanish and Basque governments for the constructive discussions we have had with them during this process. The creation of an independent ITP Aero is an excellent opportunity for the company, its employees and other interested parties. For Rolls-Royce, the financially, technologically and industrially strong ITP Aero company is also vital, "commented Warren East, CEO of Rolls-Royce.

Rolls-Royce, a Bain Capital-led consortium and ITP Aero are pleased to discuss this deal with the Spanish and Basque governments. The consortium, led by Bain Capital, supports the preservation of jobs, as well as the future growth of the company. Bain Capital is also open for negotiations to include other Spanish and Basque industrial partners representing up to 30% of capital in the consortium by the end of June 2022.

In 2021, the former Rolls-Royce plant in Hacknell was integrated into the ITP Aero business with a structured plan to include a related product supply chain in the short term.^[1]

Notes