Melrose completes £2.62bn sale of North American company

Birmingham-based Melrose Industries has completed the £2.62bn sale of its Nortek Air Management Division to Madison Industries.

The firm has confirmed the proposed return of around £730m in cash to shareholders. Cash from the sale will also contribute approximately £100m to the GKN UK defined benefit pension schemes, bringing the funding deficit to less than £200m.

Meanwhile, in a trading update this morning, (June 22), Melrose said it continues to trade in line with expectations.

Simon Peckham, chief executive of Melrose, said: “The board is delighted to have completed the sale of Air Management to Madison Industries, who are committed to continuing the development of this business. They will be a great owner and home for these assets and we wish them well.

“We have taken a conservative view for the level of the current return of capital, but if markets continue to recover, we expect to announce a further significant return next year. For now, Melrose will proceed to return 15 pence per share to shareholders, in line with expectations. We believe Melrose is well positioned for the next stage of its journey.”

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