We have been sitting around waiting for Melrose Industries to make another purchase since the sale of the last one, the Elster metering business, at the end of last year. The next deal has duly arrived and, gosh, is it a complicated one. Melrose is buying Nortek, a maker of household items such as heating equipment, air conditioning, alarms and surveillance, based in Rhode Island, for £2.15 billion in dollars. This splits into £1.1 billion for the shares, which are quoted on Nasdaq, and the rest accounted for by the company’s huge debt, much of which is being paid off.
The main shareholders are seeking an exit but have left the door open until August 6 for another bidder. Melrose is offering $86 a share;