Acquisitions
[edit]
Northern Engineering Industries / broken up and sold
In 1988, Rolls-Royce acquired Northern Engineering
Industries (NEI), based in the North East of England, a group of
heavy engineering companies mainly associated with electrical
generation and power management. The group included Clarke
Chapman (cranes), Reyrolle (now part of Siemens)
and Parsons (now part of Siemens steam turbines). The company
was renamed Rolls-Royce Industrial Power Group. It was sold off
piecemeal over the next decade as the company re-focused on its
core aero-engine operations following the recession of the early
1990s.[40]
Allison Engine Company/Rolls-Royce Corporation
On 21 November 1994, Rolls-Royce announced its intention to
acquire the Allison Engine Company, an American manufacturer of
gas turbines and components for aviation, industrial and marine
engines.[41] The two companies had a technical association dating
back to the Second World War. Rolls-Royce had previously tried to
buy the company when General Motors sold it in 1993, but GM
opted for a management buyout instead for $370 million. Owing
to Allison's involvement in classified and export restricted
technology, the 1994 acquisition was subject to investigation to
determine the national security implications.[42] On 27 March
1995, the US Department of Defense announced that the "deal
between Allison Engine Co. and Rolls-Royce does not endanger
national security."[43] Rolls-Royce was, however, obliged to set up
a proxy board to manage Allison and had also to set up a separate
company, Allison Advanced Development Company, Inc., to
manage classified programmes "that involve leading-edge
technologies" such as the Joint Strike Fighter programme.[43] In
2000, this restriction was replaced by a more flexible Special
Security Arrangement.[44] In 2001, Rolls-Royce and
its LiftSystem was among the group that won the JSF contract for
the F-35.[45]
The Allison acquisition, at $525 million (equivalent to
£328 million),[41] brought four new engine types into the Rolls-
Royce civil engine portfolio on seven platforms and several light
aircraft applications. Allison is now known as Rolls-Royce
Corporation, part of Rolls-Royce North America.[46]
Vickers/Vinters
In 1999 Rolls-Royce acquired Vickers plc for its marine
businesses.[47] The portion retained is now Vinters Engineering
Limited. Rolls-Royce sold Vickers Defence Systems (the other major
Vickers area of business) to Alvis plc in 2002.[48]
BMW joint venture / Rolls-Royce Deutschland
Rolls-Royce has established a leading position in the corporate
and regional airline sector through the development of the Tay
engine, the Allison acquisition and the consolidation of the BMW
Rolls-Royce joint venture. In 1999, BMW Rolls-Royce was renamed
Rolls-Royce Deutschland and became a 100% owned subsidiary of
Rolls-Royce plc.[49]
SAIC joint venture / Optimized Systems and Solutions
Optimized Systems and Solutions Limited (formerly known as Data
Systems & Solutions) was founded in 1999 as a joint venture
between Rolls-Royce plc and Science Applications International
Corporation (SAIC). In early 2006, SAIC exited the joint venture
agreement, making Rolls-Royce plc the sole owner.[50]
Tognum joint venture with Daimler / Rolls-Royce Power Systems
Holding GmbH
In March 2011, Rolls-Royce and Daimler AG launched a
$4.2 billion public tender offer for 100 per cent of the share
capital of Tognum AG, the owner of MTU Friedrichshafen – a
leading high-speed industrial and marine diesel engine
manufacturer, which was completed using a 50:50 joint venture
company.[51] Rolls-Royce and Daimler AG intend that the joint
venture company, which also now incorporates Rolls-Royce's
existing Bergen engine business, is listed on the Frankfurt Stock
Exchange.[51]
Aero Engine Controls / Rolls-Royce Controls and Data Services
Following the acquisition of Goodrich by United Technologies
Corporation in July 2012, Rolls-Royce announced it would
purchase Goodrich's 50% share of Aero Engine Controls to become
wholly owned by Rolls-Royce.[52]
At the June 2019 Paris Air Show, Rolls-Royce announced its
acquisition of Siemens' electric propulsion branch (while they are
partners on the E-Fan X demonstrator), to be completed in late
2019, employing 180 in Germany and Hungary.[53]
Divestment
[edit]
Energy gas turbine and compressor business
[edit]
In May 2014, Rolls-Royce sold its energy gas turbine and
compressor business to Siemens for £785 million.[54]
Commercial marine business
[edit]
In July 2018, Rolls-Royce sold its commercial marine business
to Kongsberg for £500 million.[55]
Nuclear services businesses
[edit]
In September 2019, Rolls-Royce agreed to sell its civil nuclear
services businesses in the U.S., Canada, Mondragon France, and
Gateshead UK to the Westinghouse Electric Company for an
undisclosed sum. These businesses had a revenue of $70 million and
about 500 employees in 2018. Rolls-Royce is keeping its nuclear
new build and small modular reactor (SMR) business in the
UK.[56] In November 2020, the company announced plans to build
up to 16 Rolls-Royce SMR nuclear plants across the UK, continuing
its nuclear division operations.[57] In December 2020 Rolls-Royce
announced it would sell other foreign parts of its civil nuclear
instrumentation and control business to Framatome as part of its
post-COVID recovery plan, completing the deal involving over 550
employees in November 2021.[58][59]
Major sales
[edit]
Airbus A380
In 1996, Rolls-Royce and Airbus signed a memorandum of
understanding, specifying the Trent 900 as the engine of choice for
the then A3XX, now the Airbus A380.[60] However, the Engine
Alliance GP7000 would ultimately also be offered as an option on
the A380.[61]
In October 2006, Rolls-Royce suspended production of its Trent
900 engine because of delays by Airbus on the delivery of
the A380 superjumbo. Rolls-Royce announced in October 2007
that production of the Trent 900 had been restarted after a
twelve-month suspension caused by delays to the A380.[62]
