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.

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.

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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.