Disposal

RNS Number : 0608U

Melrose Industries PLC

13 October 2014

 



11 October 2014

MELROSE INDUSTRIES PLC

Melrose Industries PLC announces the sale of Bridon Limited ("Bridon")

Melrose Industries PLC ("Melrose") announces that it has signed an agreement for the disposal of Bridon to the Ontario Teachers' Pension Plan ("OTPP").

Highlights:

·     The total consideration of £365 million on a debt and cash free basis is payable in cash on completion subject to customary adjustments.

·     As part of the transaction, Melrose will contribute £6.7m into the Bridon Group (2013) Pension Scheme, which will remain with Bridon on disposal.

·     Melrose currently intends to use the proceeds to pay down existing borrowings and to finance a return of capital in due course. The disposal is conditional upon, inter alia, certain customary anti-trust clearances and is expected to complete before the end of 2014.

Simon Peckham, Chief Executive of Melrose, said:

"Bridon is an excellent example of the Melrose "buy, improve, sell" model at work. It demonstrates our ability to create substantial value for shareholders by investing heavily in our businesses and improving operational performance. Since the acquisition of FKI in 2008, we have successfully grown and developed the Bridon business into a premier supplier of critical high-performance ropes for energy, mining and industrial applications. We have every confidence that Bridon will continue its success under the ownership of OTPP."

Rothschild is acting as lead financial adviser to Melrose. Nomura also advised on certain aspects of the transaction.

-ends-

Enquiries:

Rothschild
Lead Financial Adviser
Ravi Gupta / Yuri Shakhmin	[phone]
Nomura
Financial Adviser
Marc Potel / Mark Milano	[phone]
CTF Corporate & Financial
Financial PR
Charlotte McMullen	[phone]

Notes to Editors

About Bridon

Bridon is a global technology leader for demanding rope applications. Bridon designs and manufactures a comprehensive range of lifting and stabilising solutions for applications in wire rope, fibre rope, steel wire and strand. The company services global customers in the oil & gas, mining, industrial, marine and infrastructure sectors.

For the year ended 31 December 2013, Bridon recorded sales of £266.4 million, headline⁽¹⁾ EBITDA⁽²⁾ of £41.6 million and headline⁽¹⁾ operating profit of £34.1 million. Bridon's gross assets were £332.4 million as at 30 June 2014. 

(1) Before exceptional costs, exceptional income and intangible asset amortisation.

(2) Operating profit before depreciation and amortisation.

 

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