In a statement Rolls-Royce said, it has agreed to sell its Spanish unit ITP Aero for $2.0 billion (1.7 billion euros) to a consortium led by Bain Capital Private. The development sees the British engineering company closing in on its 2 billion pound target for divesting its non-core assets.

With the news of the sale reaching the market, share of the company shot up by 10% to 146 pence, reaching its zenith since the early weeks of the pandemic in March 2020.

Rolls Royce had announced its 2 billion pound divestment plan in August 2020, which was aimed at trimming its debt which it accumulated because of the coronavirus-induced COVID-19 pandemic. ITP was the biggest asset on the block.

The sale is subject to regulatory clearances, said Rolls-Royce’s board.

“Today’s announcement is a significant milestone for our disposal programme as we work to strengthen our balance sheet, in support of our medium-term ambition to return to an investment grade credit profile,” said Rolls-Royce’s CEO Warren East in a statement.

Following the deal, turbine blade-maker ITP will continue to remain its supplier.

Bain Capital’s consortium includes Spanish co-investors SAPA and JB Capital, with the potential for further industrial partners to join, said the company in a statement.

($1 = 0.8537 euros)

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