Melrose Industries said on Monday it has agreed to sell its Nortek Air Management business for £2.62bn and will distribute a portion of the funds to shareholders.
The British engineering firm said it plans to use part of the proceeds, which will come from Chicago-based buyer Madison Industries, to cut debt.
It added that the contribution will have reduced GKN’s pension deficit from around £1bn to £200m since acquiring it in 2018 for £8bn.
Completion of the Nortek sale is expected to occur in the second or third quarter of 2021, according to a statement.
Melrose had initiated a sale process of its Nortek air-conditioning division in March after it was delayed by lockdown restrictions last year.
“Our Ergotron and Nortek Control businesses, which also form part of the Nortek Group remain under our ownership and will be realized at an appropriate time,” Chairman Justin Dowley said.