Melrose has sold its North American FKI Logistex business to Intelligrated Inc for $40 million.
Logistex North America provides automated material handling systems including high speed sortation, conveyor systems, robotic and conventional palletising, warehouse control systems and baggage handling, among others.
In the six months to 31 December 2008, Logistex North America made an operating profit before exceptional costs of US $1.6 million and had net assets of US $27.6 million at 31 December 2008.
Melrose chairman Christopher Miller, Chairman said: “We are pleased to announce the disposal of Logistex US as the next step in our post-acquisition process. We believe that the combination with Intelligrated is an exciting opportunity for both businesses and wish them well for the next stage of their development.”
Melrose completed the takeover of the FKI group last summer. In its interim management statement for the period from 1 January to 13 May 2009, Melrose said: “Logistex US and Logistex Europe are performing to expectations. Together with restructuring in both businesses this gives us a lot of comfort for the year. While sale discussions have taken far longer than we hoped due to the complications of our buyers obtaining bank finance we remain hopeful of a sale. However, we will not sell either business unless the terms are acceptable.”
