Melrose Industries is considering the sale of a minority stake in its Nortek energy unit, after the US conglomerate said it was in talks to sell its stake in a thermostat business for €2.1bn ($2.4bn).
The npower division of Melrose, which provides equipment for consumers and businesses, posted more than £300m of turnover in 2017 and a pre-tax profit of £103m.
Nortek makes gas, electrical and ventilation systems for the heating, ventilation and air conditioning industry. It was put up for sale at the start of last year after the US group sold its Yabucoa industrial business.
“The group has had constructive discussions regarding the sale of its 58 per cent stake in Npower,” Melrose said in a statement on Monday. “If finalised, the sales price would be in excess of £2.1bn.”
Melrose’s npower unit makes boilers, gas heaters and central heating systems, and accounts for about 15 per cent of the group’s energy turnover. Melrose said it was undecided whether to raise capital from the transaction and was also considering a minority sale of its stake in the thermostat business.