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The Markets
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Manufacturing & engineering

Melrose Industries raises around £200mln from two disposals including a GKN powertrain business

The FTSE 100-listed firm said it has agreed to sell Walterscheid Powertrain Group - previously known as GKN Off Highway Powertrain - to One Equity Partners a US-based private equity firm

Melrose Industries PLC (LON:MRO) has raised around £200mln from two disposals as the turnaround specialist continues to work through its £8bn takeover last year of blue-chip automotive and aerospace parts firm GKN.

The FTSE 100-listed firm said it has agreed to sell Walterscheid Powertrain Group - previously known as GKN Off Highway Powertrain - to One Equity Partners a US-based private equity firm.

READ: Melrose reports significant progress with GKN reorganisation

The company said the sale of Walterscheid - a leading provider of original equipment and aftermarket parts and services for off-highway powertrain applications - is subject to the customary regulatory conditions and is expected to complete in the first half of this year.

In addition, Melrose announced that its subsidiary, Fokker Aerospace has completed the sale of its minority 43.57% interest in Société Anonyme Belge de Constructions Aéronautiques (SABCA), which manufactures components for aircraft and space launchers, to SABCA's majority shareholder, Dassault Belgique Aviation.

The group said combined net proceeds of the sales are approximately £200mln.

Melrose is due to report its full-year results on Thursday, March 7.

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