10th Oct 2013 07:49
LONDON (Alliance News) - Melrose Industries PLC Thursday said it has signed a conditional agreement to dispose of two US-based subsidiaries, The Crosby Group and Acco Material Handling Solutions, in a USD1.01 billion cash deal.
Melrose Industries said a newly incorporated company controlled by affiliates of Kohlberg Kravis Roberts & Co L.P. was the other party involved in the deal.
Melrose said it will use the proceeds to pay down existing borrowings and to finance a return of capital "in due course".
The disposal of the businesses, which together recorded a USD94.1 million operating profit for the year ended December 31, 2012, on sales of USD405.8 million, is expected to be completed during 2013. They had gross assets of USD684 million on December 31.
The deal is subject to obtaining anti-trust clearances in various jurisdictions, including the US.
Headquartered in Tulsa, Oklahoma, Crosby manufactures lifting and rigging products, such as shackles, blocks, sheaves, fittings, hooks and swivels. Acco, based in York, Pennsylvania, manufactures specialty material handling solutions.
Chief Executive Simon Peckham said the deal was part of Melrose's "buy, improve, sell" strategy.
JPMorgan is acting as financial advisor to Melrose, with Simpson Thacher & Bartlett LLP acting as legal advisor.
Melrose shares were Thursday quoted at 290.5 pence, up 0.2 pence, or 0.1%.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Melrose