France’s Safran acquires Rolls Royce’s 50% stake in helicopter engine venture for €293m

French aerospace, defence and security firm Safran SA (EPA:SAF) said Tuesday it had agreed to buy UK Rolls-Royce Holding PLC’s (LON:RR) 50% interest in the joint RTM322 helicopter engine programme for EUR293m (USD382m) in cash.

The transaction also includes the intellectual property rights related to the programme as well as Rolls-Royce’s 50% stake in the Rolls-Royce-Turbomeca (RRTM) joint venture.

Following completion of the deal, which is seen to occur by the end of 2013, after receipt of regulatory green light, Safran’s helicopter engine unit Turbomeca will take on responsibility of the activities related to the RTM322 engine, with Rolls-Royce providing support during a period of transition of the activities.

RTM322 is viewed as a priority project for Turbomeca, which is committed to develop it to boost its global performance, Safran noted. The deal also crates aftermarket business opportunities relating to the existing fleet, the buyer added.

Following the transition period, Safran expects the move to correspond to benefits translating into over EUR30m of operating income annually, including synergies and new commercial opportunities.

Rolls-Royce’s stake in RTM322 represents revenue of some EUR85m per year.

Rolls Royce strengthens civil nuclear operations with PKMJ acquisition

British industrial and engineering group Rolls-Royce Holdings Plc (LON:RR) on Tuesday said it had taken over US nuclear engineering services provider PKMJ Technical Services, in a move to grow its global civil nuclear business.

The buyer provided no financial details.

PKMJ offers services and solutions to nuclear utilities in the US and Canada that help manage, enhance and extend the lifetime of nuclear power plants. Its president Paul Tobin sees the deal to ensure a platform for growing its plant optimisation service portfolio, he said in a comment.

Rolls-Royce’s nuclear services business accounts for more than half of its civil nuclear operations. It provides support to operational reactors in 20 countries in Europe, North America and Asia.

The group had underlying revenues of GBP11.3bn (USD18.2bn/EUR14bn) in 2011, with provision of services generating more than half of that amount, it said.