Rolls-Royce Holdings PLC plans to sell its commercial marine business to Kongsberg Automotive for £500 million ($664.1 million.) Rolls-Royce said in January that it planned to sell its marine business, which caters to the superyacht sector, as it simplifies its business. The company cut thousands of jobs from the division as it struggled with losses.
"The sale of our commercial marine business will enable us to focus on our three core businesses and on meeting the vital power needs of our customers," said Warren East, Rolls-Royce CEO, in a story on MarketWatch.com.
Kongsberg is a Norwegian technology group that will finance the deal with a rights issue and also issue a new bond loan. The Norwegian government owns 50 percent of the company. The deal will require parliamentary consent to proceed.
"The acquisition of Rolls-Royce Commercial Marine makes us a more complete supplier to the maritime industry," said Kongsberg chief executive Geir Haoy.
Rolls-Royce Commercial Marine has about 3,600 employees. It had annual sales of about $1.1 billion in 2017. The acquisition is set to be completed in the first quarter of 2019.