Melrose to sell precision die casting business Dynacast to KDI for $590 million
06 Jun 2011
Melrose Plc, a UK-based manufacturing buyout firm, today said that it will sell its precision die casting business Dynacast to KDI Holdings Inc, a company managed by investment firm Kenner & Company Inc, for $590 million in cash.
Dynacast is the world's largest die caster of zinc, aluminum and magnesium parts for thousands of companies in hundreds of industries, including healthcare, consumer electronics, computers and peripherals and automotive.
The Charlotte, North Carolina-based company has manufacturing operations and engineering support in 20 locations throughout the world, including North America, Europe and Asia.
In the year ended 31 December 2010, Dynacast generated profit of $66.7 million on revenues of $427.3 million.
Dynacast will take $17.1 million of net pension liabilities with it and Melrose will retain all cash generated by Dynacast up to completion, said Melrose.
The board intends to return the cash proceeds from the sale to shareholders following completion of the deal.
