Rolls-Royce Holdings PLC completed the sale of its fuel injector business L'Orange GmbH to Woodward Inc. on June 1 after receiving clearance from German antitrust authorities.
Germany-based L'Orange will continue to serve as a supplier to Rolls-Royce Power Systems through a long-term supply agreement with an initial term of 15 years. It reported pro forma sales of €244 million and underlying operating profit of €64 million in 2017.
Rolls-Royce received net proceeds of €673 million from the sale after transaction costs and other adjustments. The company said it will classify L'Orange's results up to the date of completion as noncore in its 2018 results.
Colorado-based Woodward announced April 9 an agreement to acquire L'Orange and its related operations in Germany, the U.S. and China for an enterprise value of €700 million.
