Melrose Industries PLC (LSE:MRO) intends to spin-off GKN Powder Metallurgy, Inc. on September 8, 2022. Melrose will also spin-off GKN Automotive Limited along with GKN Powder Metallurgy, Inc. (DemergerCo). This will result in two independent and separately listed companies, DemergerCo and Melrose Industries PLC, each with its own distinct strategy and acquisition platform. It is expected that this separation will be by way of a demerger of new ordinary shares in DemergerCo directly to Melrose shareholders. DemergerCo will be an independent, London headquartered group and will seek admission to listing on the premium segment of the Official List and to trading on the Main Market of the London Stock Exchange. Simon Peckham and Geoffrey Martin will be executive directors of DemergerCo, as well as remaining chief executive and group finance director of Melrose. The current chief executive and finance director of GKN Automotive, Liam Butterworth and Roberto Fioroni, will take up equivalent roles for Demerger company. Demerger Co will effectively become an automotive platform, owning both GKN Automotive, a world leading supplier of driveline technologies to the global automotive industry, and GKN Powder Metallurgy. Melrose Industries PLC will maintain its listing on the premium segment of the Official List, its admission to trading on the Main Market of the London Stock Exchange and its ownership of GKN Aerospace. GKN Powder Metallurgy, Inc. reported, revenue of £948 million, total assets of £1.7 billion, total liabilities of £405 million, operating profit of £40 million and net assets of £1.3 billion for the year ended December 31, 2021. GKN Powder Metallurgy, Inc. reported total assets of £1.8 billion, total liabilities of £467 million and net assets of £1.3 billion for the year ended June 30, 2022. Melrose to seek shareholder approval for the proposed Demerger in the first half of 2023. On November 15, 2022, Demerger is expected to complete in Q2/Q3 2023. As on January 19, 2023, the shareholder approval is expected in the end of March 2023. As of March 30, 2023, GKN automotive shareholders approved the transaction. Demerger is expected to complete in Q2/Q3 2023. The transaction is expected to complete in the first half of next year. JP Morgan is acting as financial advisor to Melrose plc.

Melrose Industries PLC completed the Spin-Off of GKN Powder Metallurgy, Inc. on April 20, 2023.