Fairbanks Morse Defense Completes Rolls-Royce Naval Propulsors Acquisition
Fairbanks Morse Defense (FMD) finalized its acquisition of the Rolls-Royce Naval Propulsors business. It includes facilities in Mississippi and Massachusetts and is seen as a key step in strengthening FMD’s role in supporting U.S. naval shipbuilding.
The deal was announced in September 2024 with Rolls-Royce saying the sale of the naval propulsors and handling businesses was part of the transformation of the company, which started in 2023. It says the transformation is based on a “clear and granular strategy, focusing defense on strategic growth in the areas of combat, transport, and submarines.”
In a separate deal, Rolls-Royce is selling its Naval Handling business also to FMD. It is located in Peterborough, Ontario, Canada, and the sale is expected to close at a later date. Rolls-Royce will retain its Naval Gas Turbines and Generator Sets operations, which provide power-dense solutions for naval propulsion and onboard power needs.
Rolls-Royce highlighted that its Naval Propulsor business includes 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.
“This acquisition represents a strategic investment in sustaining the United States’ defense manufacturing capabilities and ensuring we remain prepared to meet mission-critical demands,” said Steve Pykett, CEO of Fairbanks Morse Defense.
The closing was marked at a ceremony at the newly acquired Pascagoula, Mississippi, foundry. The facility is the only privately owned foundry in the United States capable of casting large Navy-standard propulsor systems, making it a critical component of the maritime defense supply chain. Now operating through a naval-focused defense contractor, the facility is being fully integrated into Fairbanks Morse Defense’s broader portfolio of naval technologies. The strategic shift is designed to boost support for the U.S. Navy through enhanced responsiveness, increased investment, and continued innovation, while also preserving skilled jobs and strengthening Mississippi's industrial economy.
“The Pascagoula foundry, in particular, plays a vital role in supporting the Navy’s maritime dominance, and its continued operation expands our capacity to serve as a trusted partner to the U.S. military,” said Pykett. “Integrating these highly skilled workforces into Fairbanks Morse Defense strengthens our ability to deliver on our mission of supporting warfighter readiness at home and abroad.”
Fairbanks Morse Defense also gains a manufacturing campus in Walpole, Massachusetts, to produce critical propulsor systems for the U.S. Navy, Coast Guard, and allied naval fleets. When the acquisition of the facility in Peterborough, Ontario, is completed, it will support handling systems and undersea technology, including the Mission Bay Handling System used in the Global Combat Ship programs of the U.K., Canada, and Australia.
The addition of the new capabilities continues to build out Fairbanks Morse Defense's diverse portfolio that includes engines, electrical hardware, motors, valves, cranes, davit systems, fans, fittings, and water treatment solutions. The company has also advanced its technology offerings with AI, digital defense, telerobotics, additive manufacturing, smart engineering, uncrewed mission management, extended reality, and remote collaboration tools.