Rolls-Royce sells Bergen Engines to TMH International
Rolls-Royce has sold Bergen Engines - the medium speed gas and diesel engines business - to TMH International, the international branch of TMH Group, for around €150m.
The transaction, approved by the boards of Rolls-Royce and TMH, is expected to close in the second half of 2021.
The privately owned TMH Group, based in Russia, is a leading engineering company in rail transport technologies and the world’s fourth largest supplier of rail rolling stock. It offers a full range of products and services including medium-speed engines for rail applications with current production of more than 850 engines a year.
The acquisition of Bergen Engines is part of TMH’s strategy to diversify its business activities, expand its product portfolio and international footprint.
Bergen Engines will be operated as a stand-alone business by TMH International, which is headquartered in Switzerland. TMH International already operates in Argentina, Cuba, Egypt, Germany, Hungary, Israel and South Africa.
Warren East, CEO of Rolls-Royce, said the sale is part of its ongoing portfolio evaluation to create "a simpler, more focused group" and contributes towards its target to generate at least £2bn from disposals, as announced in August. The company aims to cut at least 9,000 roles by the end of 2022.
Kirill Lipa, CEO of TMH, said it sees great potential in the low emission developments of Bergen Engines as part of the global TMH Group.
"Together with Bergen Engines, TMH intends to develop a long-term strategy based on carbon-neutral applications. TMH particularly appreciates the acknowledged competence of Bergen Engines in gas engines. This is the clear technological direction for the future of combustion engines, with significant demand not only in Russia but also worldwide," he added.
Hans Schabert, President of TMH International, said the deal will allow both companies to expand their portfolios and geographical reach, bringing mutually beneficial commercial opportunities worldwide. Jon Erik Røv, Managing Director, Bergen Engines, said it is currently at the start of an "exciting era" in the development of carbon-neutral power solutions.
Rolls-Royce recently conducted the first tests of 100% Sustainable Aviation Fuel in a business jet engine (Pearl 700), as it aims to be net zero by 2050 (click here).