Rolls-Royce today announced the completion of its acquisition of Rolls-Royce Power Systems (RRPS).
The move follows an announcement made on March 7, 2014 that the Board of Management of Daimler AG had decided to exercise the put option relating to its 50% equity interest in RRPS and the announcement on April 16, 2014 that Rolls-Royce and Daimler had agreed on a fair market valuation for the shareholding of €2.43 billion.
John Rishton, CEO of Rolls-Royce said, “We are pleased to welcome Rolls-Royce Power Systems fully into Rolls-Royce. The business adds scale and capability to our reciprocating engines portfolio. It has outstanding technology, operates in long term growth markets and has proved a valuable addition to our Marine & Industrial Power Systems division.”
RRPS, which previously operated as Tognum AG, is considered a world leader in reciprocating engines, propulsion and distributed energy systems. It is headquartered in Friedrichshafen in Southern Germany and employs around 11,000 people.
Ulrich Dohle, CEO of Rolls-Royce Power Systems said, “With our well-known MTU high-speed engines, MTU Onsite Energy distributed energy systems, Bergen medium-speed engines and L’Orange fuel-injection systems, we are proud that we are now a full member of the Rolls-Royce family and look forward to contributing to its success.”
Daimler will remain a partner in the development and supply of medium and heavy-duty diesel engines in the power range below 500kW. MTU markets the off-highway versions of these truck-derivate engines to customers in the construction, industrial and agricultural markets.