Melrose (LON:MRO) , the FTSE 250 engineering specialist that buys up underperforming businesses, turns them around and then sells them for a profit, has sold three of its smaller assets. Since the start of 2011, Madico, Logistex UK and Brush Traction have all been sold, pulling in aggregate sale proceeds of approximately £20.5m.

Distribution Madico Inc is a Canadian manufacturer and distributor of a complete line of floor protection and casters and was part of the FKI Group acquired by Melrose in 2008 for just under £1bn. It was sold on 31 January to Richelieu Hardware Ltd, a North American distributor, importer and manufacturer of specialty hardware and complementary products. Elsewhere, Logistex Ltd is the legacy UK Logistex business retained in 2009 after Melrose sold the North American division to Intelligrated Inc and the European/Asian division to the Beumer Group. After implementing a revised business plan, Logistex Ltd underwent a management buy-out on 11 February and is now under the ownership and control of its senior management team. Finally, The Brush Traction Group, including Brush Barclay Ltd, is a provider of specialised engineering solutions and equipment to the UK and international rail sector and has been synonymous with quality engineering, state-of-the-art locomotives and propulsion systems for passenger carrying vehicles for many years. It was sold to Westinghouse Air Brake Technologies Corporation on 25 February.

Christopher Miller, the chairman of Melrose, said: “We are pleased to announce the successful sale of these three smaller businesses. In each case we believe the businesses are better placed with their new owners to continue their development. We wish each of them every success for the future.”

Melrose is due to publish its annual results next Wednesday (9 March). In its last update, back in November, the group said it was continuing to see revenue recovery in its businesses and that revenue visibility remained healthy on the back of increasing orders. Today, the Melrose share price gained 2% to 304.7p.

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