ACQUISITION: Melrose Acquires McKechnie

Jason Sandefur

Aviation fastener manufacturer McKechnie Group plans to expand under new ownership.
London-based Melrose PLC acquired Alcester, England-based McKechnie from Cinven Ltd. for Euro 429 million (US$783 million).
Cinven partner Richard Munton told Plastics News that Cinven will hold a 16% stake in Melrose.
“This transaction fulfills our strategy of acquiring industrial manufacturing businesses and creating a group with good underlying assets and excellent growth prospects,” Melrose chair Christopher Miller commented.
McKechnie is an aerospace and automotive plastic component manufacturer with operations in Europe, Asia and North America.
Cinven had acquired McKechnie in 2001 for Euro 649 million (US$ 935 million).
Melrose was formed in 2003 to buy underperforming industrial businesses. Melrose is traded on the London Stock Exchange.
Miller said Melrose is seeking other acquisitions, especially in China and Eastern Europe. \ 2005 FastenerNews.com