Melrose Industries sells Marelli Motorio

20th Jun 2013 07:05

Melrose Industries has agreed to sell its wholly-owned subsidiary Marelli Motorio, an electric motor and generator manufacturer.The business will be sold to an undisclosed company owned by funds managed by the Carlyle Group for a total cash consideration of €212m.Melrose said the transaction will be effected by the sale of Marelli Overseas Limited, the holding company of Marelli Motori, and will be on a debt and cash free basis.Marelli Motori recorded 2012 sales of €149.1m, headline operating profit of €18.9m and earnings before interest, tax, depreciation and amortisation (EBITDA) of €22.2m.Proceeds of the sale will be used to pay down existing borrowings and for internal group purposes. The disposal is conditional upon, inter alia, certain anti-trust clearances and is expected to complete in August.Simon Peckham, Chief Executive of Melrose, said: "Marelli Motori has performed very well during the period of our ownership since 2008, which is a credit to the hard work of its management team. Following a period of investment and international expansion, Marelli Motori is now well placed for the next stage of its development under Carlyle's ownership."RD