AERO-engines group Rolls-Royce has sold the bulk of its Vickers Turbine Components business to the private equity arm of the Royal Bank of Scotland in a deal worth an estimated £74m.

But Rolls revealed it is keeping hold of its Vickers Pressing business which is based on Tyneside and employs 165 staff.

The businesses being sold were bought by Rolls-Royce in 1999 as part of its acquisition of the Vickers engineering group, and specialise in products for the automotive, aerospace and industrial gas turbine markets.

Under the deal, Royal Bank Private Equity will take over a number of firms based in the UK and US, which employ around 1,220 staff.

Paul Heiden, finance director of Rolls-Royce, said: "This agreement offers the best future for Vickers Turbine Components and enables Rolls-Royce to increase its focus on its core business".

The firms being sold include Vickers Precision Machining, which employs 300 staff in Crewe, Vickers Aerospace Components, which employs 200 staff in Shrewsbury, and Vickers Airmotive which has 45 staff also in Shrewsbury.

Other businesses included in the sale are Ross & Catherall, which employs 160 staff in Killamarsh, near Sheffield, and Trucast, which has 310 workers at its base on the Isle of Wight.

There are also two US-based businesses being sold, based in South Carolina and California.

Paul Isaacs, regional director of Royal Bank Private Equity, said: "This transaction involves quality, internationally-focused businesses with a reputation for technical excellence and a customer and contact base of blue chip companies.

"We see both acquisition and organic growth opportunities and are keen to offer our continued support."

The net assets of the businesses being sold are around £60m with £11m of goodwill being written off as part of the transaction

As well as Vickers Pressings in Newcastle, Rolls-Royce is also keeping Ross Catherall Ceramics, which employs 240 staff at its base in Denby, near Derby