10th May 2018 11:06
LONDON (Alliance News) - Melrose Industries PLC on Thursday said currency is continuing to provide a headwind for its Nortek business so far this year as reviews its remuneration policy following its takeover of GKN PLC.
Turnaround specialist Melrose, which alongside newly-bought GKN owns engineering firms Nortek and Brush, said if the end of April's exchange rates persist for the rest of 2018 Nortek's results will be hit by around 11%.
Within Nortek, the Security & Smart Technology business has bought IntelliVision for USD35.0 million. IntelliVision, Melrose said, is a US-based company which develops video and artificial intelligence analytics technology.
The Ergotron business, likewise in Nortek, is in the early stage of a sales process, and Melrose said US corporate tax will likely be due on the excess of the sale price above USD350.0 million.
Trading at Brush is unchanged and Melrose said it on time and on budget for its restructuring plans.
Turning to GKN, ownership stood at 94% as of Wednesday, and Melrose expects to have full control in June. It is to give further guidance on its plans for the components engineer in the first week of September at the same time as its own interim results.
Due to the recent acquisition, Melrose is also to review its existing remuneration arrangements and will talk with shareholders "in the coming months".
After a hard fought battle, GKN shareholders accepted Melrose's GBP8.4 billion hostile takeover offer for GKN at the end of March. GKN shares are expected to de-list in London on May 21.
Melrose's stock was trading at 232.02 on Thursday, down 0.3%.
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