Thu, 28 Aug 2014 | DIVISION SALE
UK investment firm Melrose Industries Plc is set to begin a sale process for Elster, the German utility meter maker that it acquired for £1.8 billion in 2012.
Melrose Industries, a specialist in turning around engineering businesses, follows a ‘buy, improve and sell’ model and takes three to five years to improve a business’ performance before selling at a profit, handing a large wedge of the proceeds to shareholders.
Under Melrose’s ownership Elster has seen its profits jump by almost 50 per cent. The private equity firm still could add more value to the 100-year-old water metre business, Simon Peckham, its chief executive, told the Financial Times, but could be in for a disposal as early as 2015.
Melrose has sold five similar businesses over the past two years for £950 million, achieving a return of about £600 million to shareholders.
The firm is on the hunt for its next target, and plans to spend £1 billion to £3 billion on a purchase. An increase in asset prices over the past year and a half has made the search more difficult, however, Mr Peckham said.
He added: “We are seeing opportunities out there but we’re not seeing them at the right price.”
A strong pound has led to falling profits for Melrose, and has also been affected by changes in the US dollar and the euro.
___________________________________________________________________
Related information:
Engineering businesses for sale
Keep an eye out for our upcoming September feature article - 'Engineering businesses - putting a premium on people'
An established, award-winning care home with nursing, that is located in a popular East Midlands town and has come to market for the first time so that our client can retire.
For sale a lucrative portfolio of residential care homes conveniently clustered in the Northwest of England, offering residential and dementia care.
A profitable care home with nursing located in an East Midlands town. Well-presented and extended accommodation with 57% of the ground floor bedrooms being ensuite.
03
|
May
|
Three Aberdeen legal firms merge to form all-service provider | MERGER
Three prominent Aberdeen legal businesses have merged to for...
03
|
May
|
BGF-backed asbestos services firm makes third acquisition | BUSINESS SALE
Environmental Essentials, a specialist asbestos services fir...
03
|
May
|
Logistics firm acquires pair of Derbyshire businesses | BUSINESS SALE
A logistics firm headquartered in Preston has acquired a pai...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.