3:07pm Wednesday 4th July 2012
A RYEDALE manufacturing business has been sold to Swedish-owned plastics business Rosti A/S.
Injection moulding business McKechnie Engineered Plastics, which is based in Pickering and Stamford Bridge, was sold for £30.7 million by previous owners Alcester-based Melrose, which buys businesses to improve profitability and sell them on.
McKechnie Engineered Plastics Limited, trading as McKechnie Plastic Components (MPC), employs more than 650 people in its Yorkshire sites, as well as its metal fasteners facility in Swansea, and has a turnover of about £75 million.
Brian Mann, managing director of MPC UK, said: “This is great news for all our employees as we move forward with an existing global player and further develop our blue chip customer base. Our new owner Rosti already operates in seven different countries, employing 2,500 people and itself is owned by Nordstjernan an even larger global industrial company.”
The £240 million-turnover Rosti Group will call the new subsidiary Rosti McKechnie Ltd.
Borje Vernet, chief executive of Rosti, said: “The strategic fit between Rosti and McKechnie in terms of technical competences, culture and customers is impressive. The two companies share a common approach through developing value add solutions and providing high levels of customer service.”
The injection moulding facilities at Pickering and Stamford Bridge, along with Canning Brett, a South Wales site, will be incorporated into the European division of the Rosti Group, headed by chief operating officer Barry Coughlan.
Mr Coughlan said: “McKechnie has an outstanding reputation with a complimentary portfolio of products, services, customers and markets. We are extremely positive about the synergy between our businesses. Combining our resources will provide a platform for both UK and international growth with many of our global OEM partners.”
Mike Murphy, sales and marketing director of Rosti McKechnie, said: “In partnership with our key strategic customers, McKechnie has enjoyed significant growth over the last four years. With our new owners Rosti we can continue on this journey and fulfil our future potential.”
Melrose bought MPC in May 2005, along with die cast manufacturer Dynacast, for £243.6 million. It said it had made £800 million on its initial investment.
Christopher Miller, chairman of Melrose, said: “MPC is the final piece of the successful Dynacast and McKechnie acquisition to be sold, it has performed well as part of the Melrose group and we wish the management team every success for the future.”
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