Global engineering firm IMI has sold two group companies in a £42 million deal.
The listed company, headquartered on Birmingham Business Park, has offloaded Minworth-based Eley, which includes Eley Americas, and Accles & Shelvoke to a management team led by managing director Andrew Lane and backed by private equity house LDC.
Founded in 1828, Eley makes .22LRsporting ammunition which is used in target shooting, including by Olympic athletes, while Accles & Shelvoke manufactures captive bolt equipment.
In 2013, these businesses made revenues of £15m and operating profit of £4.4m.
IMI chief executive Mark Selway said today: "The disposal of these non-core businesses further sharpens our focus on our core specialist flow control activities.
"Our strategic plan, to double the group's 2014 operating profits over the next five years, is now being executed and the proceeds from this sale will be utilised to exploit some of the good growth opportunities available to us."
IMI recently announced it planned to close its component factory in Witton due to a downturn in orders.
The deal was transacted by LDC's Birmingham team, led by Andy Lyndon, alongside Investment Directors Chris Handy, Matt Newbold and Ben Snow. Mr Handy and Mr Newbold will join the board as non-executive directors with immediate effect.
PwC acted as financial adviser to IMI while law firm Wragge Lawrence Graham & Co acted for LDC.