Goodrich and Rolls-Royce complete engine controls joint venture

Goodrich Corporation (NYSE: GR) and Rolls-Royce Group plc announced today that they have completed the formation of a joint venture company to develop and supply engine controls for Rolls-Royce aero engines. The transaction closed on December 31, 2008.

The joint venture company, Rolls-Royce Goodrich Engine Control Systems Limited, operates as Aero Engine Controls. Each of the contributing companies owns 50 per cent of Aero Engine Controls. Goodrich will retain the aftermarket products and services business associated with the joint venture's products.

Curtis Reusser, Electronic Systems Segment President at Goodrich, said, "Today signifies a strategic step for Goodrich and Rolls-Royce that builds on a long relationship between the two companies. In combining the skill, knowledge and expertise of both companies, we have created a single world-class team to provide exceptional technology and value for engine control systems."

As part of the transaction, Goodrich received $100 million in cash, which was used to make a voluntary incremental contribution to its pension plan.

The two companies announced their intention to form the joint venture on August 14, 2008, and the signing of an agreement to form the joint venture on December 22, 2008.