Pre content


Content bottom
Switch off smileys
List  Previous  Next  View thread
Respond     Vote up     Email to a friend     Neighbourhood Watch
Author booming     View Profile     Add to favourites     Ignore
Date posted 2013-10-10 07:12
Subject MRO sells Crosby and ACCO for $1 bn 
Opinion Strong BUY
Votes for this Posting
KKR To Buy Crosby Group And Acco Material From Melrose For About $1 Bln

10/9/2013 10:05 PM ET
Private equity giant Kohlberg Kravis Roberts & Co. L.P. (KKR: Quote) said Wednesday that it has agreed to acquire two manufacturing businesses, Crosby Group and Acco Material Handling Solutions, from UK-based engineering company Melrose Industries PLC (MRO.L) for about $1 billion. The transaction is expected to close in the fourth quarter of 2013.

Tulsa, Oklahoma-based Crosby is a provider of highly engineered solutions for lifting and rigging applications across the oil and gas, construction, and mining and industrial sectors. The company makes lifting and rigging products, such as shackles, blocks, sheaves, fittings, hooks, swivels, and clamps under brands that include Crosby, McKissick, National and Lebus. Crosby has over 1,300 employees globally.

York, Pennsylvania-based Acco provides custom-built specialty material handling equipment, including a full line of hoists, industrial cranes, monorails, carts and trailers that are sold under the Louden, Wright and Nutting brands. The company has 130 employees.

Pete Stavros, a Member of KKR and Head of the Industrials investing team, said, "Crosby and Acco have long and distinguished histories of providing distributors and end customers with the highest quality products and customer support to meet their lifting and rigging needs. We are excited to partner with the many dedicated employees of both companies and look forward to working together to begin a new chapter of growth and global expansion."

KKR, founded in 1976, had $83.5 billion in assets under management as of June 30, 2013. In late July, KKR said it completed the $3.9 billion takeover of industrial equipment maker Gardner Denver Inc.

Melrose acquires manufacturing companies with strong fundamentals, whose performance can be improved by a mixture of investment and changed management focus, and later sells them.

In early August, Melrose Industries said it completed the sale of Marelli Motori to a company owned by Carlyle Group (CG) for 212 million euros. Founded in 1891, Marelli Motori is a manufacturer of industrial generators and electric motors, serving worldwide markets for power generation, marine, oil & gas and industrial manufacturing.

KKR closed Wednesday's trading at $19.94, down $0.36 or 1.77 percent on a volume of 2.47 million shares.

MRO.L closed Wednesday's trading on the LSE at 290.10 pence, down 2.80 pence or 0.96 percent on a volume of 1.82 million shares.
Respond     Vote up     Email to a friend     Neighbourhood Watch
Switch off smileys
List  Previous  Next  View thread
The content of the messages posted represents the opinions of the author, and does not represent the opinions of Interactive Investor Trading Limited or its affiliates and has not been approved or issued by Interactive Investor Trading Limited. You should be aware that the other participants of the above discussion group are strangers to you and may make statements which may be misleading, deceptive or wrong. Please remember that the value of investments or income from them may go down as well as up and that the past performance of an investment is not a guide to its performance in the future.

The discussion boards on this site are intended to be an information sharing forum and is not intended to address your particular requirements. Whilst information provided on them can help with your investment research you need to consider carefully whether you should make (or refraining from making) investment or other decisions based on what you see without doing further research on investments you are interested in. Participating in this forum cannot be a substitute for obtaining advice from an appropriate expert independent adviser who takes into account your circumstances and specific investment needs in selected investments that are appropriate for you.

Discussion Board Terms & Conditions FCA'S FSA Market Abuse Fact Sheet

Bottom Leader Board Area