Part of the Rolls-Royce Marine business for the past 15 years, Michell Bearings designs and manufactures hydrodynamic bearings for various marine and industrial applications. It maintains a manufacturing base at Newcastle-upon-Tyne, England, and a 51 percent share in Michell Bearings (India) at Bangalore, India.

The seller said the proceeds would be used to fund working capital requirements. Michell Bearings reported gross assets estimated at US$20.1 million in 2014 and generated consolidated profits estimated at US$8.9 million at the close of 2014.

British Engines has announced that along with Michell Bearings, it will also buy the Rolls-Royce Training School in Newcastle, from Rolls-Royce plc. The acquisition of Michell Bearings will make up the seventh engineering company in the British Engines group.

“Their products complement British Engines’ existing products and fit well with the group’s focus on value added engineering,” according to Richard Dodd, chief operating officer. “We are looking forward to working with the business to provide the investment in people and resources required for future growth.”

“The agreement will allow Rolls-Royce to concentrate on the core areas of our Marine business where we can add most value,” explained Mikael Makinen, president of Rolls-Royce Marine. “It will also present Michell Bearings with fresh opportunities by aligning the business with British Engines, which has a long history in the North East of England.”