£200m sale of former GKN assets

Melrose Industries has raised £200m through two deals disposing of former GKN assets.

It has sold Walterscheid Powertrain Group, which used to be called GKN Off Highway Powertrain, to American private equity firm One Equity Partners.

Separately the GKN subsidiary Fokker Aerospace has sold its 44% stake in Belgian aerospace company SABCA to its joint venture partner, Dassault Belgique Aviation.

Melrose bought GKN a year ago in a £8.1bn deal after a protracted takeover battle.

There were concerns that the purchase would lead to a break-up of GKN. But despite occasional reports of sale processes being launched or having stalled – such as the suggested sale of its powder metallurgy business for up to £2bn last summer or weekend reports of the planned £100m sale of GKN Wheels – there has been little deal activity in Melrose’s first year of ownership.

Melrose, which is in the FTSE 100, is scheduled to announce its full-year results tomorrow, which is expected to also provide some guidance on its strategy for the group.