The company confirmed that a separate agreement to sell its Naval Handling business, based in Peterborough, Ontario, Canada, is expected to close at a later date. Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which continue to provide power-dense solutions for naval propulsion and onboard energy requirements.
“The completion of the Naval Propulsors sale is an important milestone in the transformation of Rolls-Royce,” said Adam Riddle, President – Defence and Chairman and CEO – Rolls-Royce North America. “We are building a high-performing business focused on our strategic priorities.”
The divestments form part of a broader transformation strategy launched by Rolls-Royce in 2023. This strategy aims to focus its Defence business on growth in the areas of combat, transport, and submarines.
Rolls-Royce is also strengthening its presence in the United States through continued investment in core markets. Earlier this year, the company announced an expansion of its power systems operations in Mankato, Minnesota, to support demand in the data centre sector.
Over the past ten years, Rolls-Royce has invested more than $1.5 billion across the United States. This includes $1 billion directed toward Defence operations in Indianapolis, Indiana, supporting key programmes such as the U.S. Air Force B-52 Commercial Engine Replacement Programme and the U.S. Army MV-75 FLRAA programme.
