Melrose hires Rothschild to sell die-cast metal firm

BRITISH manufacturing buyout firm Melrose said trading was slightly ahead of its own view and that revenue visibility remained healthy as orders were increasing.

Melrose, which has grown by buying underperforming businesses, said it was confident that the year would end strongly and provide a good base for 2011.

The company’s Dynacast business, which makes die-cast metal parts, is expected to post second-half operating profit similar to first half levels, it said in a statement.

Melrose plans to sell Dynacast for a price expected to be more than £350m. It has hired Rothschild to advise on the sale.

Dynacast accounted for about a fifth of Melrose’s total revenue for the six months to the end of June.

Melrose shares gained 29.3p (10.7 per cent) in yesterday’s trading.