Melrose Industries Share Discussion Threads

[essentialinvestor] 23/1/2020 13:09

Sold these hoping to buy back in lower down, not going to plan atm!.

[meanwhile] 23/1/2020 13:02

Remember this report? Nothing happened at that time of course.

30 Sep 2018 - www.telegraph.co.uk › Business
Melrose to sell Nortek in £6bn disposal bonanza.

"GKN owner Melrose is preparing to cash in on its turnaround of the US air conditioning manufacturer Nortek as part of a string of sales expected to raise up to £6bn.
Melrose bosses are exploring a sale of Nortek just two years after they snapped up the business for £2.2bn.
Chris Miller, the executive chairman, ¬signalled that the turnaround is complete. “We’ve owned Nortek for two years and you have to ask, have we got to the end of the improvement programme?” he told The Sunday Telegraph.
No decision has been taken, but Mr Miller said it could form part of a series of disposals in the coming months."

[brexitplus] 23/1/2020 07:41

Yertiz, you will be very welcome. We will be drinking award winning local champagne to celebrate. Agree about Nortek. Also glad to see Saracens stuffed. Exeter should be awarded the titles they lost v Sarries.

[meanwhile] 22/1/2020 19:31

I would have been delighted to attend brexit's 100th birthday party but I'm afraid I have a prior event that same evening, a local exhibition of 'sheep photography'.

Later that evening, we have a modest brexit celebration of our own at the local anarchists club.

[yertiz] 22/1/2020 18:37

I can make the party, celebrating Brexit will be an absolute delight Other things to celebrate this year would be the cancellation of HS2, the further privatisation of the NHS and the sale of Nortek.

[minerve 2] 22/1/2020 18:12

Is it your 100th birthday? :)

[brexitplus] 22/1/2020 17:45

If anyone here is in Gloucestershire on 31st January come and join a big party.

[brexitplus] 22/1/2020 16:16

Telford-based GKN Wheels and Structures has announced the appointment of Abdul Butt to the position of chief executive officer, with immediate effect.

Abdul brings a wealth of industry and global general management experience to the role, having held a number of senior positions in GKN since joining the company in 1999.

During that time, he has held responsibility for the company’s plants at Telford and Estherville in the USA.

Abdul said: “I am delighted to have been appointed to this role at such an exciting time for the company. I am looking forward to working closely with my team to deliver our growth and development plans worldwide and to drive the long-term investment programmes across our plants and technology to bring industry leading solutions to our customers.”

GKN Wheels and Structures specialises in the design and manufacture of off-highway wheels, including for the agricultural, construction, mining, material handling, forestry and industrial sectors.

Manufacturing over eight million wheels a year, GKN Wheels has plants in the UK, Denmark, USA and China.

[meanwhile] 22/1/2020 15:58

Thanks, Minerve.

Most of the regulars on this board seem very subdued lately, probably due to adverse movements elsewhere, Burford etc.
Bad luck for now, but they’ll pick themselves up.

[minerve 2] 22/1/2020 12:57

Hi MEANWHILE

Glad to see MRO are starting to deliver something for you. It has been a while coming.

[meanwhile] 22/1/2020 12:52

If a sale of Nortek were to proceed, at the Bloomberg indicated figure of $3B, this would provide 60c (around 45p) per share, to either pay off debt, return to shareholders, or a bit of both.
If past practice is followed, a good proportion would be returned to shareholders, especially as debt isn't too burdensome.

With half a dozen engineering businesses to eventually separate out and sell off, the price this first one goes for may help to re-assess target sale prices for the rest. The failures to sell Powder Tech. and Ergotron at good prices last year had rather depressed these expectations.

A sales figure for Nortek could have a big effect on the MRO share price, in either direction.

[meanwhile] 21/1/2020 15:01

Yes, possible substantial development now at MRO, long overdue.
Is it time for a reminder? :-

"So, I'm putting all my eggs in one basket,
I'm betting everything I've got on you."
(Fred Astaire)


And for the less fortunate holders of Burford, PurpleBricks, Kier, Fevertree etc. I have this advice, again from Fred Astaire :-

"Nothing's impossible I have found,
For when my chin is on the ground,
I pick myself up,
Dust myself off,
Start all over again.

Don't lose your confidence if you slip,
Be grateful for a pleasant trip,
And pick yourself up,
Dust yourself off,
Start all over again."
(Fred Astaire)

[realbernie] 21/1/2020 11:30

Thanks for all the good info, Brexitplus

[brexitplus] 21/1/2020 11:19

From Bloomberg

“Melrose Industries Plc, the British buyout specialist, is considering selling the bulk of its Nortek division, people with knowledge of the matter said.

Birmingham-based Melrose is working with advisers to weigh options for the division’s air businesses, which sell products including heating, ventilation and cooling systems, according to the people. It is seeking to raise more than $3 billion from the sale, the people said, asking not to be identified because the information is private.

Melrose bought Nortek Inc. in 2016 for $2.8 billion including debt. The original Nortek businesses’ adjusted operating profit has risen 40% under Melrose’s ownership, it said in a September investor presentation.

Nortek Air & Security makes large heating and air-conditioning systems installed during home construction, as well as products like range hoods and bathroom ventilation fans. The unit also sells residential security systems and smart-home products, a part of the business that’s struggled due to the impact of tariffs and intense competition.

The company could keep some smaller businesses under the Nortek Air & Security division, the people said. No final decisions have been made, and Melrose could decide to keep the assets for longer, the people said.

A representative for Melrose declined to comment.

A divestment would allow Melrose to focus on turning around the operations of British aerospace and automotive firm GKN Plc, which it acquired in a hostile takeover in 2018. Melrose, which listed on the U.K. stock market in 2003, buys industrial companies and improves the way they’re run before selling them.”

[brexitplus] 20/1/2020 18:16

Nortek news - investment and job creation.

“Nortek Air Solutions has expanded its heating and air conditioning equipment manufacturing plant at 4841 N. Sewell Ave. in Oklahoma, investing $10 million and creating 200 jobs.”

[brexitplus] 20/1/2020 18:14

FT on GKN-DELTA collaboration

“GKN Automotive, the world’s largest supplier of driveline technology, is partnering with Delta Electronics of Taiwan to accelerate development of power systems for electric vehicles as manufacturers prepare to launch a slew of battery powered cars to meet new emissions targets.

The automotive component supplier, acquired in 2018 by buyout specialist Melrose Industries after a bitter £8bn bid battle for engineer GKN, said the “strategic collaboration”, which will be announced on Monday, would strengthen its position as a leading eDrive supplier. Together the two companies will invest about £100m a year in developing standardised eDrive solutions for the next generation of battery powered vehicles.

The partnership with Delta, a specialist in power electronics, will enable GKN to offer a more competitive and “scalable, next-generation 3-in-1 eDrive systems” within three years, said Liam Butterworth, chief executive of the business. These combine the electric motor, gearbox and power electronics into a single package that would reduce cost, weight and packaging for car manufacturers. Competitors in eDrive such as Bosch and ZF of Germany already have their own power electronics units.

The move comes as the car industry is suffering the double whammy of a global slowdown in sales and tougher emission targets from the EU.

Under EU rules, carmakers must lower average CO2 emissions from the vehicles across their fleet to 95g per km, or face penalties that could run into hundreds of millions, even billions, of euros.

The decline of diesel is forcing carmakers to embrace battery technology more quickly to avoid fines and a torrent of electric vehicles is due to hit the market in the coming two years to help them comply with the new rules.

As a result some carmakers are joining forces to speed up new electric vehicle launches. For example, Ford and VW last summer significantly expanded their existing global alliance with agreements to collaborate on electric vehicles and self-driving technology. Toyota has also joined forces with Subaru and Suzuki to invest in electric cars.

Suppliers will have to keep up with them, however and Roland Berger, the management consultancy, estimates the market for electric driveline systems could be worth more than £12bn by 2030.

GKN is already a leader in conventional driveline, which transfers power from the transmission to the wheels. The vast bulk of its business remains focused on fuel-powered vehicles but in recent years it has invested heavily in the transition to electric cars. In 2019, Melrose announced it had sold 1m eDrive units.

Taiwan-based Delta, with annual sales of $9bn in 2018, is a global provider of switching power supplies and thermal management products. It sells electric and hybrid vehicle components, including on-board chargers, as well as charging systems.

Mr Butterworth said the collaboration with Delta represented “a significant milestone” in the group’s electric vehicle strategy. It would significantly increase each company’s technical capabilities and accelerate time to market, he said. Eventually the two companies could decide to move to a formal joint venture, although this could be two years away, he added.

Within three years, the new 3-in-1 eDrive units would be available for cars across most vehicle types — from city cars to SUVs. Research and development would be done in the UK and Germany, while the systems would be built in China and Europe.”

[brexitplus] 20/1/2020 18:12

Barclays Capital has increased its target price from 250p to 270p.

[brexitplus] 20/1/2020 11:24

GKN Automotive and Delta Electronics are collaborating on a joint development which will enable integrated 3-in-1 eDrive systems of power classes from 80kW to 155kW.

The joint development of eDrive technology will see inverters supplied by Delta Electronics integrated with GKN Automotive's eMotor and gearbox systems in a 3-in-1 solution.

"The eDrive market continues to accelerate as manufacturers are required to meet increasingly stringent emissions regulations demanding technological progression and speed," said GKN Automotive CEO, Liam Butterworth.

"Our collaboration with Delta represents a significant milestone in the expansion of our portfolio of scalable, integrated 3-in-1 eDrive solutions and our capabilities in rapidly bringing new cost competitive technologies to market."

For his part, Delta Electronics, COO, Simon Chang added: "Delta is dedicated to enabling low-carbon green transportation by providing EV powertrain solutions and power electronics products, including traction inverters, traction motors, on-board chargers, DC/DC converters and EV charging solutions to the market."

GKN Automotive has produced more than 1m eDrive units to date, while Delta Electronics has nearly 50 years of expertise in power electronics.

The collaboration will centre on the development of two new integrated eDrive families for application across different torque classes for the next generation of hybrid and electric vehicles.

Within three years, the new 3-in-1 eDrive units will be available for start of production in a multitude of vehicle types, from A-segment city cars to D-segment executive cars and SUVs, supporting a range of torque outputs from 2,000 Nm to 3,800 Nm, with nominal power outputs of between 80 kW to 155 kW.

The solutions will cover a large proportion of the future eDrive market, which is projected to be worth more than GBP12bn (US$16bn) by 2030.

[minerve 2] 20/1/2020 10:52

Oh dear, is this more MRO thread hype on other stocks?


How is Fevertree today for you folks?

I seem to remember some of the clowns on here waxing lyrical about buying into the stock.

Getting, Brexit, Yertiz (AKA the chief clowns) ????????


LOL

[bigalan3] 17/1/2020 07:28

Yertiz,
People in the chat rooms mentioned they could be life changing and I agree with them. The market cap is almost backed up by free cash and producing 21,000 boe per day. Boss owns 29.999% of the shares and they are very acquisitive (in the North Sea). My biggest investment ever.
I / we cannot go wrong - can we !!!!!!!

[yertiz] 16/1/2020 17:51

Well, bigalan3 - looks as though you have found a right cracker with RRE. You must be pleased with progress this year so far! Taken a little dabble today to join the fun.

[brexitplus] 13/1/2020 18:16

Goldman Sachs has increased its target from 230 to 250p.

[keyno] 12/1/2020 15:51

I can't say I'm not disappointed, Meanwhile but they say that the best things are not only free but worth waiting for and I'm confident you'll come up with an absolute corker when the time is right.

So, I shall be watching the share price with even more interest now, knowing there is more than just a pot of gold at the end of that particular rainbow.

In the meantime, Meanwhile, if you have a yen to post another pic or two, please don't be shy ......

[meanwhile] 12/1/2020 13:30

Keyno,
I'm very sorry to have disappointed you on the photo. I'm expecting a substantial move upwards very soon and the next wallet photo is being held back to fully reflect this.

In the meantime, if it's wallets themselves you are interested in, you can find a huge selection with internet suppliers of leather goods and same on the high street.

I was going to suggest you seek advice on leather goods suppliers from some other posters, like brexit and getting, but I now realise they are more into rubber and latex goods.

[minerve 2] 12/1/2020 11:55

'For the Lord is our judge.' Isaiah 33.22.

Absolutely, and I am sure Minerve will be judged in a better light than getting, Brexit and others. Wishing something bad on someone is not as bad as deliberately supporting policy that plays havoc on people and their lives especially the poor and disabled whilst supporting others to receive obscene bonuses.

Getting and Brexit are going to be spending much longer in purgatory than Minerve. Best pack your sandwiches. ;)