Rolls-Royce to acquire Aero Engine Controls
Rolls-Royce, the global power systems company, announces today that it will
acquire the 50 per cent of shares it does not already own in Aero Engine
Controls (AEC) a joint venture with Goodrich Corporation. AEC was established
in January 2009 to combine the engine controls businesses of the two companies.
The joint venture principally designs and manufactures engine control systems
including electronic engine controllers, fuel pumps and fuel metering units for
a wide range of Rolls-Royce engines and for a number of other programmes.
Engine control systems play an increasingly important part in enhancing the
fuel efficiency and overall performance of modern jet engines. This acquisition
will give Rolls-Royce full ownership of a critical capability that confers
competitive advantage.
AEC employs around 1,400 people and has sites in Birmingham, Derby, and Belfast
in the UK and in Indianapolis, USA.
The transaction has been agreed with United Technologies Corp (UTC), which is
in the process of acquiring Goodrich. The acquisition of the remainder of the
shares in AEC by Rolls-Royce will only proceed once the acquisition of Goodrich
by UTC is complete and once any necessary antitrust approvals are obtained.
The transaction will have no material impact for Rolls-Royce on the current
year's financial performance.
