UK's Melrose to sell Nortek Air Management unit for about $3.63 billion

(Reuters) – Melrose Industries said on Monday it has agreed to sell its Nortek Air Management business for about 2.62 billion pounds ($3.63 billion) to Chicago-based Madison Industries, and will distribute a portion of the proceeds to shareholders.

The British engineering business owner said it plans to use a part of the proceeds to reduce debt and contribute about 100 million pounds to GKN UK pension scheme, reducing the funding deficit to about 200 million pounds from 1 billion pounds.

Melrose had initiated a sale process of its Nortek air-conditioning division in March after it was delayed by lockdown restrictions last year.

“Our Ergotron and Nortek Control businesses, which also form part of the Nortek Group remain under our ownership and will be realised at an appropriate time,” Chairman Justin Dowley said.

($1 = 0.7217 pounds)

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