Melrose Industries Plc (MRO.L) Wednesday said it has signed a conditional agreement for the disposal of Truth Hardware to Tyman Plc for a total consideration of $200 million, or 129 million pounds, payable in cash on completion. The consideration is on a debt and cash free basis.
Melrose, a manufacturing buy-out specialist, noted that it intends to use the proceeds to pay down existing borrowings. Completion of the deal is expected to occur in June 2013.
The disposal is conditional upon Tyman's firm placing and placing and open offer in connection with its equity fundraising becoming effective and anti-trust clearance in the US.
Truth is a designer and manufacturer of operating hardware in North America for residential and light commercial windows and doors.
For the full-year 2012, Truth recorded sales of $126.0 million, operating profit of $18.6 million and EBITDA of $22.5 million.
Simon Peckham, chief executive of Melrose said, "As planned at acquisition, we are disposing of Truth at the early stages of what appears to be a recovery in the United States housing market."
Robert W. Baird & Co. served as the exclusive financial advisor to Melrose in the sale of the business.
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