Rolls-Royce is seeking to sell off its L’Orange fuel injector business, according to media reports.
Bloomberg News said Rolls-Royce wants to raise as much as US$700 million from the disposal of L’Orange, whose products are found in diesel engines used in ships and industrial applications.
Rolls-Royce, according to Bloomberg, began showing L’Orange unit’s financial data to potential bidders last month and is closing in on an agreement. Interested parties have included private-equity firms as well as strategic buyers in the sector.
Stuttgart, Germany-based L’Orange’s customers include marine-engine maker Wärtsilä, as well as Rolls-Royce itself. L’Orange’s offering encompasses the entire range of products in injection technology for all off-highway applications in ship propulsion systems, special-application vehicles and power plants. The company was founded in 1933 in Germany.
The Sunday Times newspaper reported on the proposed sale on Nov. 19, according to Bloomberg.