Industrial investor Melrose has agreed to sell its injection moulding business McKechnie Engineered Plastics in a £30.7 million deal.
Alcester-based Melrose (MRO) has sold the York-based firm to Danish company Rosti A/S.
The news comes just days after the Post revealed Melrose was in talks over a £1.47 billion takeover of German engineering firm Elster Group.
Christopher Miller, chairman of Melrose, said the acquisition of McKechnie, along with the Dynacast businesses, in May 2005 for a net equity investment of £243.6 million has resulted in total cash generation of nearly £800 million – giving a return on initial equity of approximately 3.25 times.
He added: "MPC is the final piece of the successful Dynacast and McKechnie acquisition to be sold, it has performed well as part of the Melrose group and we wish the management team every success for the future."
McKechnie Engineered Plastics had gross assets of £46 million and net assets of £26.6 million at the turn of the year.