Britain’s Rolls-Royce is buying out partner Goodrich Corp. in its engine controls joint venture, gaining full ownership of its fuel pumps and metering units business.
The two companies combined their controls businesses in 2009 to form Aero Engine Controls. The joint venture employs 1,400 people in Birmingham, Derby and Belfast in Britain and in Indianapolis in the United States.
“Engine control systems play an increasingly important part in enhancing the fuel efficiency and overall performance of modern jet engines,” Rolls-Royce officials said on Friday. “This acquisition will give Rolls-Royce full ownership of a critical capability that confers competitive advantage.”
Rolls-Royce said the deal won approval with United Technologies Corp., which is in the process of buying aircraft components maker Goodrich.
The British company said it would pay half of the net asset value of AEC once the takeover wrapped up.
The joint venture, designed to break even, had gross assets of $180.7 million at the end of 2011.