Rolls-Royce Energy to sell its energy assets to Siemens
The purchase price is 785 million pounds or aproximately €950 million. The transaction is expected to close before the end of December 2014, subject to regulatory approvals.
In addition, as part of the transaction, Siemens will get exclusive access to future Rolls-Royce aero-turbine technology developments in the 4 to 85 megawatt power output range as well as preferred access to supply and engineering services. For this 25 year duration agreement, Siemens will pay Rolls-Royce an additional 200 million pounds, or approximately €240 million.
By acquiring Rolls-Royce's small and medium aero-derivative gas turbines with a power output of up to 66 megawatts (ISO/wet-rating), Siemens will close a technology gap in its extensive gas turbine portfolio.
Originally developed for use in the aviation industry, Rolls-Royce Energy's aero-derivative gas turbines have a compact, weight-optimized construction and are highly efficient. These characteristics make aero-derivative gas turbines an attractive power supply option in the oil and gas industry, in particular for the operators of offshore oil platforms where space is limited.
Due to their efficiency and fast start-up capabilities, aero-derivative gas turbines are also used for the dependable decentralized power generation in industry – their flexibility helps meet peak electricity demands, provide emergency power reserves and stabilize the power grid.
Rolls-Royce Energy's gas turbine and compressor business is one of the leading providers of aero-derivative gas turbines. In this segment, the acquired business, which has around 2,400 employees, delivered revenue of 871 million pounds (approximately €1.1 billion) and earnings before interest and tax (EBIT) of 72 million pounds (about €88 million) in fiscal 2013. With an installed base of about 2,500 gas turbines, Rolls-Royce Energy's business has the world's second-largest fleet of aero-derivative gas turbines. ■