Venture capital firm Cinven has reached an agreement with quoted aerospace fasteners and plastics group McKechnie to take it private in a £434m deal.
Announcing the £4 per share bid for McKechnie, whose shares fell to £2.22 earlier this year, Cinven said the £525m turnover firm would complement its existing portfolio, which includes William Hill and United Biscuits.
`McKechnie is a business with considerable potential,’ said Richard Munton, Cinven director.
`It is clear that decent quoted engineering businesses are right out of favour as far as the stock market is concerned, which is putting low values on companies. McKechnie’s value appeared most out of line with its performance.’
The existing management, led by chief executive Andrew Walker and group finance director Stuart Moberley, will remain. Cinven will now focus on expanding McKechnie’s interests in aerospace via its specially created BlueAzure company.
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