Fairbanks Morse Defense (FMD), a portfolio company of Arcline Investment Management, has entered into an agreement with Rolls-Royce to acquire its Naval Propulsors and Handling business. The acquisition will include 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. 

The sale comprises operations in Mississippi and Massachusetts, as well as the specialized naval handling systems unit in Peterborough, Canada.

Terms of the acquisition were not announced and the closing is subject to regulatory review and approval.