Rolls-Royce Sells Naval Propulsor Business to Fairbanks Morse

As part of its ongoing strategy to hone its operations to improve financial results, UK-based Rolls-Royce is selling its naval propulsors and handling business to Fairbanks Morse Defense, a leading U.S. defense contractor. The sale comprises operations in Mississippi and Massachusetts, as well as the specialized naval handling systems unit in Peterborough, Canada.

The CEO of Fairbanks Morse George Whittier is calling it a transformative deal for the company which already offers a diverse portfolio of engines, motors, and systems for naval craft. Fairbanks Morse is a leading supplier for U.S. Navy vessels as well as the U.S. Coast Guard, UK Royal Navy, Royal Canadian Navy, and Royal Australian Navy.

“The way that our products and services complement each other is unmatched in the defense industrial base,” said Whittier. “Combining our capabilities allows Fairbanks Morse Defense to substantially increase what we offer to our U.S. maritime defense customers while also offering our systems and components solutions to Rolls-Royce's global customer base.”  

The acquisition will include a range of propellers and waterjets for naval applications, as well as marine handling systems, which enable the deployment and recovery of manned and unmanned craft, and other cargo, from naval vessels. Rolls-Royce says that its propulsion equipment can be found on more than 95 percent of the U.S. Navy Surface Warfare fleet, including on all the U.S. aircraft carriers currently in service. In 2021, the company reached an agreement with Fincantieri Marinette Marine to design and manufacture up to 40 propellers for the Constellation-class (FFG-62) guided missile frigate program.

Rolls-Royce has two facilities in the United States including its marine propeller and waterjet manufacturing campus in Pascagoula, Mississippi that is responsible for producing controllable pitch propeller blades and hub body castings, large fixed-pitch propellers, and waterjets for the U.S. Navy. 

According to the company, it is the country’s only privately owned foundry that is qualified to cast propellers for the U.S. Navy’s surface and submarine fleet, making it a United States National Asset.  In 2022, the U.S. Department of Defense through the DPA Title III program provided a grant to support the construction of a new 26,000 facility, with foundry and machining equipment in Pascagoula.

The facility in Walpole, Massachusetts also works with ship propulsor systems and aftermarket services for the U.S. Navy, U.S. Coast Guard, and other international navies. It supports controllable pitch propellers, fixed propellers, and waterjets.

In addition to the propulsors, Fairbanks Morse Defense is acquiring Rolls-Royce Peterborough, Canada which supports the design and manufacture of handling systems, launch and recovery systems, and undersea sensors and systems for navies across the globe. Its products include the next-generation Mission Bay Handling System for the Global Combat Ship program, a frigate program for the UK Royal Navy, Royal Canadian Navy, and Royal Australian Navy.

They are also used on U.S. Navy fleet supports, amphibious ships, surface combatants, submarines, and more, as well as on U.S. Coast Guard vessels. Rolls-Royce handling systems are found on many of the U.S. Navy’s surface combatants.

Terms of the acquisition were not announced and the closing is subject to regulatory review and approval. Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which provide power dense solutions for naval propulsion and onboard power needs.