Track Record

History

  • 2018
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2009
  • 2008
  • 2007
  • 2005
  • 2003
2018
April
Melrose acquired GKN Plc, a UK publicly listed FTSE100 company, for £8 billion.
2016
August
Completed the acquisition of Nortek for £2.2 billion with a fully underwritten £1.6 billion Rights Issue and £0.6 million of debt.
February
A sum of £2.4 billion was returned to shareholders in February 2016
2015
March
A sum of £200 million was returned to shareholders in March 2015
2012
August
Completed the acquisition of Elster Group SE for £1.8 billion. Fully underwritten £1.2 billion Rights Issue and new £1.5 billion 5 year bank facility
2009
June
Sold Logistex (excluding UK) for £50 million
2008
July
Completed the acquisition of FKI plc for a total consideration including debt, of just under £1 billion
2007
August
Shareholders received a capital return of £220 million
June
Sold the McKechnie Aerospace business for £428 million and the PSM business for £30 million, doubling the shareholder value in 18 months
2005
December
Moved onto London’s main exchange. Entered the FTSE 250.
May
Acquired McKechnie and Dynacast for £429 million from private equity group Cinven. Raised £230 million in equity
2003
October
Listed on AIM - £13 million

Shareholder investment and gain

Melrose has achieved an average annual return on equity investment of 25% since making the first acquisition in 2005, with an increase in operating margins between five and nine percentage points across the businesses sold to date.

£4.80 billion of shareholder value created to date

25% average annual return for a shareholder since the first acquisition

2.7x average return on equity across all businesses sold

Value creation on previous deals

McKechnie/Dynacast

McKechnie/Dynacast

  • Bought for
    £0.4bn
  • Sold for
    £0.8bn
  • Investment in business
    51%
  • Equity rate of return
    30%
  • Shareholder return on original equity
    3.0x
  • Sales growth
  • Margin growth
  • Cash generation
  • Multiple expansion

FKI

FKI

  • Bought for
    £1.0bn
  • Sold for
    £1.6bn
  • Investment in business
    66%
  • Equity rate of return
    30%
  • Shareholder return on original equity
    2.9x
  • Margin growth
  • Cash generation
  • Multiple expansion

Elster

Elster

  • Bought for
    £1.8bn
  • Sold for
    £3.3bn
  • Investment in business
    25%
  • Equity rate of return
    33%
  • Shareholder return on original equity
    2.3x
  • Sales growth
  • Margin growth
  • Cash generation
  • Multiple expansion

Responsible stewardship

Melrose has substantially improved the funding levels for all the pension schemes under its ownership.

Responsible-stewardship-chart.svg (1)

Margin and return

Total shareholder returns (TSR)(1)

Total shareholder return.svg

(1) Since Melrose IPO (October 2003)

How Elster and Nortek operating margin improved

elster-and-nortek-chart.svg (1)
  • Returns on capex and restructuring and other commercial actions
  • Central cost savings 
  • Exit of low margin sales channels