Share price soars after turnaround specialist’s £1bn deal

TURNAROUND specialist Melrose Industries saw its share price soar yesterday as investors reacted positively to its £1.1bn deal for a US manufacturer.

The Alcester-based company has had its bid for Nortek, in Rhode Island, accepted which will see it take full ownership of the manufacturer

Shares in Melrose jumped 48% yesterday to close at 598p, giving the company a market value of £870m.

It returned £2.4bn to shareholders in February, following the sale of its Elster business to Honeywell.

Since then it had been looking for an acquisition and believes that Nortek “represents a significant opportunity for Melrose to execute its strategy of ‘buy, improve, sell'”.