Rolls-Royce buys out JV Aero Engine Controls
09 Jun 2012
Leading global power systems company, Rolls-Royce Plc said Friday that it will take full control of Aero Engine Controls (AEC), its 50:50 joint venture with Goodrich Corporation, enhancing the company's critical capability in control systems.
AEC designs and manufactures engine control systems including electronic engine controllers, fuel pumps and fuel metering units for Rolls-Royce engines.
Rolls-Royce said that it will acquire the 50-per cent of shares it does not own in AEC.
The deal has been agreed with the US company United Technology Corp (UTC), a manufacturer of high-tech products, which is in the process of acquiring Rolls-Royce's partner Goodrich. However, the purchase of AEC will proceed only after UTC completes its acquisition of Goodrich, Rolls-Royce said.
AEC was formed in 2009 combining the control businesses of Rolls-Royce and Goodrich. The joint venture employs about 1,400 people in its plants in Birmingham, Derby and Belfast in the UK and in Indianapolis in the US.
''Engine control systems play an increasingly important part in enhancing the fuel efficiency and overall performance of modern jet engines,'' Rolls-Royce said.