Aerospace and automotive plastic component manufacturer McKechnie Group plans to expand under new ownership.
London-based private equity firm Cinven Ltd. sold Alcester-based McKechnie, along with metal component producer Dynacast Group, to public investment company Melrose plc in April for £429 million ($783 million).
``This transaction fulfills our strategy of acquiring industrial manufacturing businesses and creating a group with good underlying assets and excellent growth prospects,'' Melrose Chairman Christopher Miller said in a news release.
He said his London-based firm is looking for other acquisitions and opportunities to build on the new businesses, particularly in China and Eastern Europe.
Cinven, which began talks with Melrose early this year, will hold a 16 percent stake in Melrose to take advantage of the upswing in the aerospace industry, said Cinven partner Richard Munton.
Cinven acquired Dynacast, including SPM - its U.S. plastics injection molding unit - for $528 million in 1999. A year later, it sold SPM to United Plastics Group Inc. of Westmont, Ill.
In October 2000, Cinven bought McKechnie for £550 million ($805 million). McKechnie, with products that include aviation fasteners and components, auto parts and materials-handling containers, has operations in Europe, Asia and North America.
Melrose formed in 2003 to buy underperforming industrial businesses.
The company took advantage of the joint Cinven disposal months after losing out to Honeywell International Inc. of Morristown, N.J., in the purchase of building products group Novar plc of Weybridge, England.