June 20 Engineering turnaround specialist Melrose Industries Plc said it would sell its Marelli Motori business, which makes electrical motors and generators, to private equity company Carlyle Group in a deal worth about 181 million pounds ($283.5 million).
Melrose, which bought the business as part of its about 1 billion pound acquisition of FKI Plc in 2008, said it expected the deal to complete in August and planned to use the proceeds to pay down existing debt and for internal company purposes.
News of the sale comes only weeks after Melrose, which follows a private equity-type model of investing in companies to improve their performance and then sell them after about three to five years of ownership, said it was in talks to sell two other units.
Last month, the company said it would sell its Truth Hardware business to Tyman Plc for $200 million.
Founded in 1891 and headquartered in Italy, Marelli Motori's revenue has grown rapidly in the last few years. In 2012, the business reported sales of 149.1 million euros ($200 million) and an operating profit of nearly 19 million euros.
"Following a period of investment and international expansion, Marelli Motori is now well placed for the next stage of its development under Carlyle's ownership," Melrose Chief Executive Simon Peckham said in a statement.
Shares in Melrose closed at 247 pence on Wednesday on the London Stock Exchange.