Rolls-Royce sells L’Orange fuel injection business for €700m

Rolls-Royce CEO Warren East said the sale will help Rolls-Royce Power Systems to ‘focus on other long-term, high growth opportunities’.

Headquartered in Fort Collins, Woodward designs and manufacturers control system solutions and components for the aerospace and industrial markets.

L’Orange has approximately 1,000 employees and supplies fuel injection technology for marine power and propulsion systems, special-application vehicles, oil and gas processing, and power generation.

The company’s technology can be found in engines produced by Rolls-Royce Power Systems’ subsidiaries, MTU Friedrichshafen and Bergen Engines, and other low-to-high speed engine builders. Stuttgart-based L’Orange will continue to supply Rolls-Royce Power Systems through a long-term supply agreement, with an initial term of 15 years.

In 2017, L’Orange reported pro forma sales of €244m, pro forma underlying EBITDA of €74m, pro forma underlying operating profit of €64m and pro forma post-tax free cash flow of €51m.

“This transaction builds on the actions we have taken over the last two years to simplify our business,” East said in a statement. “The divestiture of L’Orange enables… our company to allocate our capital to core technologies and businesses that drive greater returns for the Group.”