LONDON Britain's Melrose Plc MRO.L said on
Friday it was selling its McKechnie Aerospace business to JLL
Partners in a $855.6 million deal and that it planned to return
200 million pounds ($394 million) to investors.
JLL Partners is a New York-based private equity company.
Shares in Melrose, which has previously said it was in
talks to sell its aerospace arm, were up 4.3 percent at 201.25
pence by 0925 GMT to value the company at 517 million pounds.
"We are now focused on the continued improvement in
performance of our remaining businesses and finding the next
acquisition opportunity," Chairman Christopher Miller said in a
Melrose started as an investment firm and went public in
October 2003 with a strategy of acquiring companies and
businesses whose performance it felt could be improved.
McKechnie Aerospace, acquired as part of McKechnie Group,
is being sold for $850 million plus $5.6 million of debt.
Melrose will retain McKechnie Vehicle Components and
McKechnie Plastic Components. It also owns Dynacast which makes
precision engineered metal components.
Melrose shares have underperformed other industrial
engineers .FTASX2750 by 5 percent over the past 12 months.