Mumbai: Engineering major Larsen & Toubro has signed a pact to sell its UK-based integrated marine automation solutions unit Servowatch Systems to Rolls-Royce, the two companies announced on Wednesday.
The pestment is a part of L&T’s strategy to exit non-core businesses and consolidate operations.
Rolls-Royce said the acquisition will significantly expand the ship automation pision of its MTU product and solution brand of its power systems business.
The companies have not disclosed the deal size.
L&T’s wholly owned subsidiary Larsen & Toubro International FZE runs Servowatch Systems that is headquartered in Heybridge, Essex. The unit has 44 employees in the UK and India who work on integrated marine automation solutions for navies, commercial vessels and large yachts.
“The pestment of Servowatch Systems is as per our stated goal of unlocking value within the existing business portfolio by pesting non-core units,” S N Subrahmanyan, CEO and MD of Larsen & Toubro, said in a statement. “L&T facilitated the business to develop an award-winning software platform for the latest generation of marine integrated platform management systems that are sold globally to many navies and commercial operators. We believe its partnership with Rolls-Royce and its product and solution brand MTU will pave the way for its further growth.”
Andreas Schell, CEO of Rolls-Royce Power Systems, said, “Servowatch’s modern and sophisticated range of automation and integrated bridge systems for government and commercial ships and large yachts is the ideal complement to continue to offer sophisticated total system solutions for marine propulsion systems and the entire ship automation sector.”
L&T continuously evaluates its business portfolio with a long-term perspective for capital allocation. Earlier this year, it closed a Rs 14,000-crore deal to sell its electric and automation business to French firm Schneider Electric.
In the past, it has pested its stake in ports, insurance and road concessions businesses, while exiting some others like petrol pump vending machines and cement businesses.