Rolls-Royce Holdings plc (“Rolls-Royce”) has finalized the sale of its Naval Propulsors business to Fairbanks Morse Defense (“FMD”), a portfolio company of Arcline Investment Management, according to the company's release.
The transaction, originally announced on 19 September 2024, includes the Pascagoula, Mississippi, and Walpole, Massachusetts, units.
Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which continue to serve naval propulsion and onboard power requirements.
A parallel sale of its Naval Handling business in Peterborough, Ontario, remains subject to closing at a later date.
Proceeds from the disposals support Rolls-Royce’s ongoing transformation, launched in 2023, which refocuses its Defence division on strategic sectors including combat, transport, and submarines.
The company also maintains a substantial U.S. presence: a recently announced expansion of its power systems operations in Mankato, Minnesota, along with over $1.5 billion invested across the U.S. in the past decade—most notably $1 billion in Indianapolis to support the U.S. Air Force B‑52 Commercial Engine Replacement and U.S. Army MV‑75 FLRAA programmes.
Rolls‑Royce Holdings plc is a London Stock Exchange–listed public limited company operating globally across civil aerospace, defence, and power systems. With 2024 underlying revenue of $23.01 billion and operating profit of $3.18 billion, the firm has strategic operations in naval gas turbines, aero engines, and energy solutions.
Fairbanks Morse Defense is a U.S.-based provider of marine engines, propulsion, and related systems to the U.S. Navy, Coast Guard, Military Sealift Command, and allied navies. It operates under Arcline Investment Management as a portfolio company.