REG - Melrose Industries - Disposal

Melrose IndustriesAnnouncement

06/06/2022 07:00

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RNS Number : 6934N  Melrose Industries PLC  06 June 2022

3 June 2022

MELROSE INDUSTRIES PLC

 

SALE OF ERGOTRON

 

Sale of Ergotron

Melrose Industries PLC ("Melrose", the "Company" or the "Group") has entered
into an agreement to sell its Ergotron business ("Ergotron"), to funds managed
by The Sterling Group ("Sterling") for total consideration of approximately
$650 million (c.£520 million), payable in cash on completion (the
"Disposal"). Ergotron is a leading designer, manufacturer and distributor of
ergonomic products for use in a variety of working, learning and healthcare
environments, with gross assets (mostly goodwill) as at 31 December 2021 of
£617 million and 2021 adjusted operating profit of £58 million (2021 EBITDA
£62 million).

Completion of the Disposal is expected to occur in the third quarter of 2022
("Completion") and is conditional upon customary US antitrust approvals. On or
before Completion, Melrose will announce how it intends to use the net
proceeds from the Disposal.

 

Successful execution of Melrose's strategy for Nortek

Having sold the Nortek Air Management and Nortek Control businesses last year,
Ergotron is the last of the businesses remaining from the Nortek Inc
acquisition in 2016.  On Completion, Melrose will have more than doubled
shareholders' initial investment, whilst transforming the Nortek businesses
themselves.

Refocusing them away from unprofitable work, Melrose made the significant
investment necessary to implement operational best practices, increase
R&D, develop new products and build stronger customer relationships.
These actions resulted in an almost doubling of adjusted operating margins and
ensured each business remained highly cash generative, with over $1 billion
generated during Melrose ownership.

This strong support and appropriate investment under Melrose ownership
unlocked the potential of all the Nortek businesses and set them on the path
for further success under new owners for the next stage of their
development.

 

Simon Peckham, Chief Executive of Melrose, today said:

"The sale of Ergotron is the final step in our Nortek ownership cycle, capping
what has been a very successful acquisition for Melrose shareholders.  We
will have more than doubled shareholders' equity investment in Nortek and have
transformed the businesses themselves.  Our attention now remains firmly on
achieving the same result for the current Group."

 

Enquiries:

 Investor Relations:                                                            +44 (0) 7974 974690
 ir@melroseplc.net (mailto:ir@melroseplc.net)

 Montfort Communications - Financial PR:                                        +44 (0) 20 3514 0897
 Nick Miles miles@montfort.london (mailto:miles@montfort.london)                +44 (0) 7739 701634
 Charlotte McMullen mcmullen@montfort.london (mailto:mcmullen@montfort.london)  +44 (0) 7921 881 800

 

 

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