13th Oct 2014 06:16
LONDON (Alliance News) - Melrose Industries PLC Monday said it has reached a deal to sell its Bridon division to the Ontario Teachers' Pension Plan for GBP365 million on a debt and cash free basis, money it will use to pay down debt and to finance a return of capital "in due course".
As part of the transaction, which is expected to complete before the end of 2014, Melrose will contribute GBP6.7 million into the Bridon Group (2013) Pension Scheme, which will remain with Bridon on disposal.
Bridon supplies high-performance ropes for energy, mining and industrial applications.
"Bridon is an excellent example of the Melrose "buy, improve, sell" model at work. It demonstrates our ability to create substantial value for shareholders by investing heavily in our businesses and improving operational performance,2 Melrose Chief executive Simon Packham said in a statement.
Melrose was advised by Rothschild, and Nomura also advised on some aspects of the deal.
By Steve McGrath; [email protected]; @stevemcgrath1
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