Industrial conglomerate Larsen & Toubro (L&T), through its wholly-owned subsidiary Larsen & Toubro International FZE, signed definitive agreements with Rolls-Royce's Power Systems Division for the strategic divestment of its UK-based integrated marine automation solutions provider Servowatch Systems.
The transaction would be done for an enterprise value of Rs 88.8 crore, excluding applicable taxes and any applicable post-closing adjustments.
The company, headquartered in Heybridge, Essex, UK, has 44 employees in the UK and India, who deliver integrated marine automation solutions for navies, commercial vessels and large yachts.
S.N. Subrahmanyan, CEO & MD, Larsen & Toubro, said: "The divestment of Servowatch Systems is as per our stated goal of unlocking value within the existing business portfolio by divesting non-core units. 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."
The transaction is part of L&T's strategic portfolio review process.