Fri, 19 Nov 2010 | BUSINESS SALE
Precision alloy die-castings business Dynacast may soon be put up for sale by its owner, engineering buyout firm Melrose.
Melrose, formed in 2003 to buy, repair, then sell struggling industrial companies, has brought in Rothschild to advise on the sale. The asking price is expected to exceed £350 million.
Dynacast was acquired along with another manufacturer McKechnie in a £429 million deal with Cinven in 2005. Dynacast makes zinc, magnesium and aluminium alloys, and supplies to various markets including consumer electronics, telecoms and automotives.
The informal sale news comes as Melrose’s trading results were ahead of expectations for its third quarter. Its equity has been valued at £1.5 billion on the back of a jump in the value of its shares.
Private equity outfits Advent, Bridgepoint, Permira, Montagu and 3i are to receive the marketing material for the sale shortly.
Dynacast generates profits of £40 million per annum, and accounted for about one fifth of Melrose’s total turnover for the six months to the end of June.
Altium Securities analyst Steve Medlicott said Dynacast “looks ready to be sold albeit this is not mentioned in the statement.”
In a prime location, this freehold business opportunity includes a detached, well-equipped bakery factory along with a retail outlet and cafe, all part of a family business with a century of trading history.
Established in key industries like power generation and rail, this company offers specialised electrical and engineering services across the UK and Ireland, boasting strong relationships with blue-chip clients and a reliable income stream.
This well-established company has a decade-long track record in a growing market and is fully relocatable or can be operated remotely, providing flexibility for the new owner.
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