Disposal

RNS Number : 4439H

Melrose Industries PLC

20 June 2013

 



20 June 2013

MELROSE INDUSTRIES PLC

Melrose Industries PLC ('Melrose') announces the sale of Marelli Motori, a leading electric motor and generator manufacturer.

Melrose announces that it has signed an agreement for the sale of its wholly owned generators and electric motors business, Marelli Motori, to a company wholly owned by funds managed by the Carlyle Group ('Carlyle').

·    The total consideration of €212.0 million (£181.4 million)⁽¹⁾ is payable in cash on completion. 

·    The transaction will be effected by the sale of Marelli Overseas Limited, the holding company of Marelli Motori and will be on a debt and cash free basis.

·     For the year ended 31 December 2012, Marelli Motori recorded sales of €149.1 million, headline operating profit of €18.9 million and EBITDA⁽²⁾ of €22.2 million. 

·     Melrose currently intends to use the proceeds to pay down existing borrowings and for internal group purposes. The disposal is conditional upon, inter alia, certain anti-trust clearances and is expected to complete in August 2013.

Simon Peckham, Chief Executive of Melrose, said:

"Marelli Motori has performed very well during the period of our ownership since 2008, which is a credit to the hard work of its management team. Following a period of investment and international expansion, Marelli Motori is now well placed for the next stage of its development under Carlyle's ownership."

Melrose was advised on this transaction by Nomura International plc.

(1)   Using an exchange rate as at 19 June 2013 of €1.00 = £0.8558.

(2)   Headline operating profit before depreciation and amortisation.

Enquiries

M:Communications
Ann-marie Wilkinson/Andrew Benbow	[phone]

Notes to Editors

Information on Marelli Motori

Marelli Motori, based in Italy, is one of the world's leading manufacturers of generators and electric motors. With five overseas offices in Germany, UK, Malaysia, USA and South Africa it serves worldwide markets for power generation, marine, oil & gas and industrial manufacturing. 

In the year ended 31 December 2012, Marelli Motori generated revenues, EBITDA⁽²⁾ and headline operating profit of €149.1 million, €22.2 million and €18.9 million respectively. Marelli Motori's gross assets were €125.8 million as at 31 December 2012. The purchase price is equivalent to 9.5 times 2012 EBITDA⁽²⁾ for Marelli Motori.

Nomura International plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is a member of the London Stock Exchange.

 

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