THE break-up of Redditch-based GKN is set to start with new owners Melrose expected to sell the global company’s Powder Metallurgy division, according to reports.
Operating on five continents, the division is expected to command a price of up to £2billion says Sky News, and could be sold as early as the autumn.
It’s just three months since Melrose was successful in its £8bn hostile takeover of Ipsley-based GKN.
The company specialises in turning companies round, asset stripping the best parts and selling them on for a profit.
The buyout of GKN had raised alarm bells in Government – the 250 year old company holds extensive defence contracts and it was feared any sell off could jeopardise UK security.
However in the end the sale was given the green light by Theresa May’s administration.
The Powder Metallurgy division accounted for £1.1bn of GKN sales in 2017, said Sky News.
The division specialises in metal powders for engineering, cars and aeroplanes and directly employs 6,000 people around the world, none of whom are in the UK.
However it is GKN’s third core division with aerospace and automotive and will have been controlled from Ipsley Church Lane here in Redditch.