Melrose To Buy Nortek For $86/Shr - Quick Facts

(RTTNews) - The Board of Melrose Industries PLC (MRO.L) announced it has reached agreement with Nortek, Inc. on the terms of a recommended proposal for Melrose to acquire the entire issued ordinary share capital of Nortek. The offer price of $86 per Nortek Share, net, in cash and without interest, values the entire issued share capital of Nortek at $1.44 billion with an enterprise value of $2.81 billion.

Melrose proposes to finance the acquisition, related expenses and the repayment of part of the existing debt of Nortek from the net proceeds of a fully underwritten rights issue of 12 New Melrose shares at 95 pence for each 1 existing Melrose share. The balance of the debt repayment will be funded through new debt of approximately $780 million.

Nortek is a diversified global manufacturer of innovative air management, security, home automation and ergonomic and productivity solutions. Nortek is a corporation organised under the laws of the State of Delaware.

The Board of Melrose stated that its expectations for the Group's full year performance remain unchanged from that detailed in the trading statement on 11 May 2016.