29th Dec 2015 12:12
LONDON (Alliance News) - Melrose Industries PLC on Tuesday said it has completed the GBP3.3 billion sale of its Elster Group energy metering business to US industrial conglomerate Honeywell Inc and has completed the GBP2.4 billion return of capital to its shareholders.
Melrose agreed to sell the Elster business to Honeywell back in July and said it would return the bulk of the proceeds to shareholders. The sale of Elster leaves Melrose with only Brush, an electricity generation company, as its only remaining asset.
The rest of the proceeds not returned to shareholders has been mostly used to pay down existing debt, Melrose said.
Melrose operates a "buy, improve, sell" model, under which it acquires underperforming companies, returns them to health and then sells them on.
Christopher Miller, Melrose's chairman, said the company remains "optimistic" it will identify a suitable new acquisition in due course.
Melrose shares were up 0.3% to 295.20 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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