Melrose fires up the engines on two GKN floats following a four year restructuring drive
Melrose Industries is looking at floating two GKN businesses on the stock market following a huge restructuring since it bought the company four years ago.
Melrose took over engineering giant GKN in a controversial £8billion deal in 2018 and vowed to overhaul the firm, which made cannonballs for the Napoleonic wars and RAF Spitfires during World War Two.
FTSE 100-listed Melrose has now said the restructuring has been so successful that it is plotting to list drivetrain maker GKN Automotive and GKN Aerospace on the stock market. Selling the units is another option.
Precision: Melrose took over engineering giant GKN in a controversial £8bn deal in 2018. The firm made cannonballs for the Napoleonic wars and RAF Spitfires during World War Two
Boss Simon Peckham said the company was not close to firing the starting gun on the spin-outs, but that it was ‘beginning to load the gun’.
It is thought GKN Aerospace would be well-suited to the LSE.
But GKN Automotive could be better placed to float in the US, where there are more listed car makers.
Melrose yesterday reported profits at GKN Automotive more than doubled to £172million and for GKN Aerospace were up eightfold at £112million.