Melrose to sell U.S. hardware unit to Tyman for $200 mln
May 1 (Reuters) - Engineering turnaround specialist Melrose Industries Plc said it would sell its North American hardware company for $200 million in cash to Tyman Plc.
AIM-listed Tyman said it would seek to move to the main market along with the acquisition, which is expected to complete by July. It added it would move its shares to the official list at a later date if the acquisition was not completed.
Tyman, which supplies components for doors and windows, said it would fund the acquisition through a sale of shares, a $100 million loan and cash on hand.
Owatonna, Minnesota-based Truth Hardware recorded sales of $126.0 million in 2012. The manufacturer of hardware for door and windows employs about 700 people in North America.
Melrose, which follows a private equity-type model of investing in companies to improve their performance and then sell them, said it would use the proceeds from the sale to repay existing debt.