Rolls-Royce agrees £610m deal for its fuel injection business

Engineering giant Rolls-Royce has confirmed the sale of L’Orange, its fuel injection technology business, as part of efforts to streamline its business.

Rolls-Royce initially announced that it was looking at its options for L'Orange in January, and this morning confirmed that it would be sold to Woodward for £610m. L’Orange supplies fuel injection technology for engines used in marine power and propulsion and other industrial applications. It employs around 1,000 staff from its base in Germany and will be renamed Woodward L’Orange after the sale, which is expected to go through in the second quarter of 2018.

“Rolls-Royce Power Systems will remain a key customer of Woodward L’Orange,” said Andreas Schell, president and chief executive of Rolls-Royce Power Systems. “We have enjoyed working with L’Orange who have a leading position in their markets, excellent technology, a skilled workforce and strong leadership. We wish them well as they join the Woodward organisation.”

Paul Adams, head of aerospace at management consultancy Vendigital, said the move would allow Rolls-Royce to focus on its core activities, and the areas of the business that deliver the strongest returns. 

“Big changes are under way at Rolls-Royce, which have already started to transform its performance,” he told Professional Engineering. “The business announced annualised profits before tax of £4.9bn last month, up from a loss of £4.6bn last year. More can be achieved if Rolls-Royce continues with its five-to-three plan to simplify its business model by reducing its operating divisions."