26th Nov 2008 16:27
MELROSE PLC Sale of McKechnie Vehicle Components ("MVC")
In the Interim Management Statement released on 19 November 2008, it was stated that the fundamental review of MVC was almost complete. This review has now been completed and Melrose PLC announces that it has sold 100% of the equity of McKechnie Vehicle Components USA, Inc. the holding company of the MVC Business, for $1 to a new third party acquisition vehicle, MVC Holdings LLC, a company controlled by American businessman, Michael Torakis, by way of a share sale. In addition Melrose will leave $2.5 million of cash within MVC to be repaid to Melrose within one year, secured against the assets of the business with no performance conditions.
MVC manufactures decorative exterior trim products for the US automotive industry. In the six months to 30 June 2008 MVC made an operating loss of £2.5 million and had net assets, after adding back the overdraft, at 30 June 2008 of £39.4m of which £15.8m was goodwill.
Enquiries
M:Communications
James Hill 0207 153 1559
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