FKI, the British engineering group that’s currently in talks with an unnamed suitor regarding a proposal thought to be around £765m, has announced that it is looking to dispose its Hardware and FKI Logistex businesses.

The company, that began a strategic review in November of last year, has decided to take a “progressive focus” on what it considers to be its higher growth units, its Lifting Products and Services and Energy Technology businesses. According to the group, the units have a better growth profile alone than the current business, and are due to benefit from the ongoing strength of the energy markets.

The disposal of Hardware and Logistex, which together accounted for £552m of revenue, a 9 per cent drop from last year, could be a lengthy process, with an 18-24 month timetable put forward by the company. FKI is against listing Hardware in the US, considering it too small to be viable in US terms, but are considering listing Logistex in the UK as a separate company.

Chief executive Paul Heiden said: “The funds provided by disposals will allow us to restructure the group’s financial arrangements. 

The current financial structure of the group and the sentiment in the US housing sector will be key determinates in the timing of the completion of any activity. We aim to complete the process as soon as possible but want to maximise value for the shareholder.”

On the topic of FKI’s discussions which could lead to a sale of the company, Mr Heiden commented: ‘We didn’t instigate the approach, we’ve had a number of approaches and w have to respond to these things once again with our eye on the best value for the shareholder…we don’t have an offer, therefore we have to continue to run the business to the best of our ability.”