Rolls-Royce, the global power systems company, announces today that it will acquire the 50 per cent of shares it does not already own in Aero Engine Controls (AEC) a joint venture with Goodrich Corporation. AEC was established in January 2009 to combine the engine controls businesses of the two companies. The joint venture principally designs and manufactures engine control systems including electronic engine controllers, fuel pumps and fuel metering units for a wide range of Rolls-Royce engines and for a number of other programmes.
Engine control systems play an increasingly important part in enhancing the fuel efficiency and overall performance of modern jet engines. This acquisition will give Rolls-Royce full ownership of a critical capability that confers competitive advantage.
AEC employs around 1,400 people and has sites in Birmingham, Derby, and Belfast in the UK and in Indianapolis, USA.
The transaction has been agreed with United Technologies Corp (UTC), which is in the process of acquiring Goodrich. The acquisition of the remainder of the shares in AEC by Rolls-Royce will only proceed once the acquisition of Goodrich by UTC is complete and once any necessary antitrust approvals are obtained.
Source: Rolls-Royce Plc (LSE: RR.L)
Date: Jun 8, 2012