Melrose Industries PLC announced early October that it has signed an agreement for the transfer of Bridon to the Ontario Teachers’ Pension Plan (OTPP).
Highlights of the agreement include, the total consideration of £365 million on a debt and cash free basis is payable in cash on completion subject to customary adjustments. As part of the transaction, Melrose will contribute £6.7m into the Bridon Group (2013) Pension Scheme, which will remain with Bridon on disposal. Melrose currently intends to use the proceeds to pay down existing borrowings and to finance a return of capital in due course. The transfer is conditional upon, inter alia, certain customary anti-trust clearances and is expected to complete before the end of 2014.
“Bridon is an excellent example of the Melrose “buy, improve, sell” model at work. It demonstrates our ability to create substantial value for shareholders by investing heavily in our businesses and improving operational performance. Since the acquisition of FKI in 2008, we have successfully grown and developed the Bridon business into a premier supplier of critical high-performance ropes for energy, mining and industrial applications. We have every confidence that Bridon will continue its success under the ownership of OTPP” said Simon Peckham, Chief Executive of Melrose.