Melrose Industries announces sale of Crosby & Acco

RNS Number : 1407Q

Melrose Industries PLC

10 October 2013

 



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10 October 2013

Melrose Industries PLC

Melrose Industries PLC announces the sale of Crosby and Acco

Melrose Industries PLC ('Melrose') announces that it has signed a conditional agreement for the disposal of Crosby and Acco ('Crosby') to a newly incorporated company controlled by affiliates of Kohlberg Kravis Roberts & Co L.P.

Highlights:

·    The total consideration of US$1,010 million (£627.3 million)⁽¹⁾ is payable in cash on completion.

·    For the year ended 31 December 2012, Crosby recorded sales of US$405.8 million, headline⁽²⁾ operating profit of US$94.1 million and headline⁽²⁾ EBITDA⁽³⁾ of US$100.9 million.

·    The disposal is conditional, amongst other things, upon obtaining anti-trust clearances in various jurisdictions, including the United States, and is targeted for completion during 2013. Melrose currently intends to use the proceeds to pay down existing borrowings and to finance a return of capital in due course.

Simon Peckham, Chief Executive of Melrose, said:

"The disposal of Crosby perfectly demonstrates Melrose's strategy to "buy, improve, sell" and the value it delivers to shareholders. Since it became part of Melrose following the successful FKI acquisition in 2008, Melrose has invested significantly in the business and the vision of its management team. Crosby has performed exceptionally well since then and we are confident that, under the ownership of KKR, the Crosby success story will continue."

J.P. Morgan is acting as financial advisor to Melrose and Simpson Thacher & Bartlett LLP is acting as legal advisor to Melrose.

(1) Using an exchange rate as at 8 October 2013 of £1 = US$1.61.

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

(3) Operating profit before depreciation and amortisation.

-ends-

Enquiries: CTF Corporate & Financial
Charlotte McMullen/Kate Ruck-Keene	[phone]

Notes to Editors

About The Crosby Group and Acco Material Handling Solutions

Crosby and Acco are global market leaders in the design, manufacture and marketing of highly-engineered solutions and accessories used in lifting, rigging and material handling applications.  Headquartered in Tulsa, OK, Crosby manufactures lifting and rigging products, such as shackles, blocks, sheaves, fittings, hooks, swivels, and clamps under leading brands, which include Crosby, McKissick, National and Lebus.  Headquartered in York, PA, Acco manufactures specialty material handling solutions under the well-recognized Louden, Wright and Nutting brands.

Crosby's gross assets were $684 million as at 31 December 2012.

 

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