Melrose plc is reported to have launched a takeover bid for FKI, parent company of warehouse automation specialist FKI Logistex.
A statement from FKI on Friday said: “The board of FKI plc notes the recent press speculation and movement in the company’s share price and confirms that it has received an approach which may or may not lead to an offer being made for the Company. The board would like to emphasise that the approach is very preliminary and therefore there is no certainty that any offer will be forthcoming.”
Melrose has a strategy of “acquiring businesses whose operational performance can be improved to create shareholder value”. ?In May 2005 Melrose acquired two specialist engineering companies, Dynacast and McKechnie, for an enterprise value of £429 million.
Setting out its strategy in November last year, FKI Logistex said it planned to focus on its energy sector activities. It said it would progressively separate FKI Logistex and Hardware businesses, although the timing of completion was difficult to predict.
FKI has four main divisions:
Logistex – a major provider of automated material handling systems (servicing airport baggage handling, freight and parcel, warehouse and retail distribution and manufacturing businesses). Sales for the year ended 31 March 2007 were £372.6m.
Hardware – the leading US supplier of window, storm and screen door hardware (focused on window and door manufacturers, DIY stores and office furniture markets). Sales for the year ended 31 March 2007 were £179.7m.
Energy Technology – the world’s leading independent supplier of turbogenerators and other power infrastructure equipment (manufacturing for the power generation, oil and gas and rail industries). Sales for the year ended 31 March 2007 were £344.4m.
Lifting Products and Services – world leaders in wire and wire rope, fittings and lifting products (servicing construction, mining and the oil and gas industries). Sales for the year ended 31 March 2007 were £434.2m.