Melrose PLC ('Melrose') announces tht it has signed an agreement for the disposal of its Dynacast division ('Dynacast') to a newly incorporated company, KDI Holdings Inc., managed by Kenner & Company, Inc. ('Kenner & Company'). The disposal is conditional, among other things, upon obtaining regulatory clearances in the relevant jurisdictions in which Dynacast operates. Closing is expected during August 2011.
Christopher Miller, Chairman of Melrose, stated, "The sale of Dynacast marks another successful milestone for Melrose. As a result of the improvement in its performance we have quadrupled the shareholders' investment in Dynacast within six years. Almost £1 billion of case will have been generated from McKechnie & Dynacast which were acquired for £429 million in 2005. This is an excellent validation of the Melrose model and our strategy of operational improvement and realization."
"We thank all the employees of Dynacast for their dedicated service in our ownership and are confident of the future for Dynacast in its continued development under Kenner & Company."
Simon Newman, the CEO of Dynacast, and his management team will remain with Dynacast in their current positions and it will operate as an independent company.
Dynacast is a leading global provider of precision die cast components for a wide variety of industries including healthcare, consumer electronics, computers and peripherals, and automotive, among others.
Dynacast has extensive engineering expertise to manufacture small parts with complex geometries and tight tolerances in a single step using zinc, aluminum and magnesium alloys: metals that have excellent manufacturing, physical and mechanical characteristics.
Dynacast has manufacturing operations and engineering supprt in 20 locations throughout the world including North America, Europe and Asia. Dynacast takes pride in reliably serving its many regional and global customers through value engineering; developing component solutions that add value and product differential.
KDI Holdings Inc is a Delaware-incorporated company formed by a consortium of financial investors for the purpose of the Dynacast acquisition.
Founded in 1986 by Mr. Jeffrey L. Kenner and headquartered in New York, Kenner & Company is a private investment firm specializing in leveraged buyouts and venture capital investments. It seeks to acquire ownership positions in private operating companies that need capital for growth or liquidity for current shareholders.
For more information visit: www.dynacast.com