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Rolls Royce confirms it is studying options for L'Orange unit
Rolls Royce confirmed recent press speculation that it might be looking to hive-off its l'Orange unit, but clarified that the strategic review under way would have no impact on the rest of its Power Systems arm.
On 12 January, Bloomberg reported that Rolls had opened that unit's financial books to potential buyers in December and, citing one person familiar with the matter, that it was closing in on a deal.
The company was reportedly aiming to raise as much as $700m via the sale of the unit, which specialised in the manufacture of fuel injectors for diesel and heavy fuel oil engines such as those used on ships and for industrial applications.
"Irrespective of the outcome of this review, Rolls-Royce intends to maintain close ties to L'Orange, either as an owner or as a key customer," Rolls said in a statement.
The potential for a transaction was first reported as far back as 19 November by the Sunday Times.