OREANDA-NEWS. Rolls-Royce Holdings plc ("Rolls-Royce") today confirmed the valuation of EUR 720m for the 53.1% shareholding in Industria de Turbo Propulsores SA ("ITP") currently owned by SENER Grupo de Ingenier?a SA. This follows completion of due diligence, subsequent to the announcement in July 2016, that Rolls-Royce will purchase the outstanding stake.

Under the agreement, consideration will be settled over a two-year period following completion in eight evenly spaced instalments of equal value. The updated agreement allows flexibility to settle the consideration either in cash, in the form of Rolls-Royce shares or any mixture of the two, as preferred by Rolls-Royce. A decision as to whether each payment will be settled in cash, shares or cash and shares will be determined by Rolls-Royce during the payment period.

Completion remains subject to regulatory clearances and is expected in 2017.

The acquisition of ITP strengthens Rolls-Royce’s position on its Civil Aerospace large engine growth programmes by capturing significant additional value from long-term aftermarket revenues, including on the high volume Trent 1000 and Trent XWB engine programmes where ITP has played a key role as a risk and revenue sharing partner. It also enhances the group’s manufacturing and services capabilities and adds value to the Defence Aerospace business, particularly on the TP400 and EJ200 programmes. With their excellent facilities, services and products, ITP has been a trusted partner for Rolls-Royce and other engine manufacturers.

Warren East, Rolls-Royce, CEO, said: "We have enjoyed a successful partnership with SENER, building ITP to its current scale and capability. This agreement represents the best outcome for both of our companies and we look forward to welcoming ITP’s employees into Rolls-Royce."

Ignacio Mataix, ITP, CEO added: "I am delighted that we can now start planning our integration into the Rolls-Royce family. We already know Royce-Royce well and are excited about the opportunities offered by joining a global leader in advanced engineering. We look forward to creating even better aerospace products and services together. At the same time, we will maintain our current portfolio and strengthen our global position."