(Alliance News) - Melrose Industries PLC on Monday said it has agreed a USD650 million deal to sell the final asset belonging to 2016 acquisition Nortek Inc.
Melrose shares were 3.8% higher at 138.45 pence each in London on Monday morning, one of the best blue-chip performers.
The industrial turnaround specialist said it has agreed to offload its Ergotron business to funds managed by Sterling Group.
Completion of the sale is expected to occur in the third quarter of 2022 and is conditional upon customary US antitrust approvals. On or before completion, Melrose will announce how it intends to use the net proceeds, the FTSE 100 listing added.
Ergoton is a manufacturer of ergonomic products such as computer mounts, stand-up desks, and mobile carts. Ergoton achieved an adjusted operating profit of GBP58 million in 2021.
Melrose, having sold the Nortek Air Management and Nortek Control businesses last year, said Ergotron is the last of the businesses remaining from the Nortek acquisition in 2016. On completion, Melrose will have more than doubled shareholders' initial investment, the rand noted.
Chief Executive Officer Simon Peckham said: "The sale of Ergotron is the final step in our Nortek ownership cycle, capping what has been a very successful acquisition for Melrose shareholders. We will have more than doubled shareholders' equity investment in Nortek and have transformed the businesses themselves. Our attention now remains firmly on achieving the same result for the current group."
Melrose back in April 2021 had agreed to sell the Nortek Air Management business to Chicago, Illinois-based Madison Industries for GBP2.62 billion.
It had agreed a deal to buy Nortek Inc for USD1.44 billion back in July 2016.
By Eric Cunha; ericcunha@alliancenews.com
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Melrose (MRO)