Melrose Industries Plc, the engineering turnaround specialist, has announced that it would be selling off its North American hardware company. The price for the sale would be US$200 million and the buyer would be Tyman Plc.
Tyman, which is listed in AIM, said it would hit two birds with one stone with the acquisition, which is to move to the main market alongside the competition. The transfer is expected to be completed by July of this year. It would also be moving its shares to the official roster of shareholders at a later date should the acquisition not follow through until its completion.
Tyman's main business is to supply door and window components. It would be funding the acquisition through a share sale, its cash on hand and with a US$100 million loan.
Melrose Industries Plc, for its part, follows a private equity type investment model in order to improve performance and then sell its ownership shares. The proceeds from the sale would be used to repay existing debts of the company.
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