Pratt & Whitney, a United Technologies Corp. company, closed today on its agreement to purchase Rolls-Royce's program share in IAE International Aero Engines ("IAE"). More information about the closing will be announced by IAE at the Farnborough Air Show on July 9.

"This strategic deal strengthens the presence of Pratt & Whitney and the IAE shareholders now and well into the future," Pratt & Whitney President David Hess said. "Rolls-Royce will continue to support IAE as a strategic supplier for the V2500 engine and continue to perform its key responsibilities for IAE, including the manufacture of parts and engines."

IAE is a multinational aero engine consortium whose shareholders now consist of Pratt & Whitney, Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation (JAEC) and MTU Aero Engines GmbH (MTU). To date, over 5,000 V2500 engines have been delivered and nearly 2,000 more engines are on order with close to 200 customers around the world.

As well as restructuring participation in IAE, on October 12, 2011, Pratt & Whitney and Rolls-Royce also announced the formation of a new collaboration to power future mid-size aircraft, which is subject to separate regulatory approvals. IAE partners JAEC and MTU have also agreed to join this new venture. This collaboration will draw on the most advanced technology from these world-class companies to drive enhanced performance for this fast growing segment in which worldwide demand for around 20,000 new aircraft (or nearly 45,000 engines) is predicted over the next twenty years.