Rolls-Royce sells Michell Bearings to British Engines for £12.6m

28th Apr 2015 09:57

Rolls-Royce said on Tuesday it will sell its Michell Bearings business to British Engines for £12.6m.The sale is expected to be completed in the autumn, and the money will be used for working capital requirements.Michell Bearings is a designer and manufacturer of hydrodynamic bearings based in Newcastle-upon-Tyne, which posted profits of £5.9m and gross assets of £13.3m in 2014.Rolls-Royce president Mikael Makinen said the sale will allow the group to concentrate on the core areas of its marine business.He also said the agreement will "present Michell Bearings with fresh opportunities by aligning the business with British Engines, which has a long history in the North East of England".Shares in Rolls-Royce fell 1.39% to 1039p on Tuesday at 10:09.