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
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.
-
Rightmove: property asking prices hit record high
News Rising demand for top of the ladder home is boosting asking prices, Rightmove research shows. Is now a good time to sell a property?
By Marc Shoffman Published
-
FTSE 100 hits record highs – why is it rising and will we see more gains?
Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
By Marc Shoffman Published