Melrose hails McKechnie windfall
Melrose said it had sold its injection moulding business, McKechnie Engineered Plastics, earning over three times what it paid for it.
Melrose said it had sold its injection moulding business, McKechnie Engineered Plastics, earning over three times what it paid for it.
The engineering company sold McKechnie to global plastics group Rosti A/S for £30.7m in cash.
The acquisition of McKechnie, along with the Dynacast businesses, in May 2005 for a net equity investment of £243.6m resulted in total cash generation, including all disposal proceeds and the repayment of debt, of nearly £800m, Melrose said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This amounted to a return on initial equity of approximately 3.25 times.
"[This] is the final piece of the successful Dynacast and McKechnie acquisition to be sold, it has performed well as part of the Melrose group and we wish the management team every success for the future," said Chairman Christopher Miller.
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published