Yesterday Melrose signed and closed the sale of its UK injection moulding business, McKechnie Engineered Plastics Limited trading as McKechnie Plastic Components (MPC), for a cash consideration of £30.7m to Rosti A/S. The sale proceeds will be used to reduce net debt. At 31 December 2011 the company had gross assets of £46m and net assets of £26.6m.
The acquisition of McKechnie, along with the Dynacast businesses, in May 2005 for a net equity investment of £243.6m has resulted in total cash generation, including all disposal proceeds and the repayment of debt, of nearly £800m - giving a return on initial equity of approximately 3.25 times.
Christopher Miller, Chairman of Melrose, stated:
"MPC is the final piece of the successful Dynacast and McKechnie acquisition to be sold, it has performed well as part of the Melrose group and we wish the management team every success for the future."
Nick Miles/Ann-marie Wilkinson/Andrew Benbow
+44 (0)20 7920 2330
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