Melrose set to sell Dynacast for $590m

6th Jun 2011 13:09

Engineering conglomerate Melrose is set to dispose of its precision die cast components division, Dynacast, to KDI Holdings for a consideration of $590m.KDI, which is managed by investment firm Kenner & Company, will be $590m in cash on completion. In addition Dynacast takes with it $17.1m of net pension liabilities.This equates to an enterprise value of £370m, almost double the value of £197m when Melrose first owned the group in May 2005, the firm said."Nearly £1bn in cash will have been generated from the original £429m McKechnie and Dynacast acquisition," Melrose said."The sale of Dynacast marks another successful milestone for Melrose. As a result of the improvement in its performance we have quadrupled the shareholders' investment in Dynacast within six years," said chairman Christopher Miller.---BC