Melrose to separate GKN Powder Metallurgy and GKN Automotive

Companies & MarketsNews
September 21, 2022

September 21, 2022

Melrose plans to demerge GKN Powder Metallurgy and GKN Automotive (Courtesy GKN Powder Metallurgy)
Melrose plans to demerge GKN Powder Metallurgy and GKN Automotive (Courtesy GKN Powder Metallurgy)

Melrose Industries PLC, UK, has announced plans to separate the GKN Powder Metallurgy and GKN Automotive businesses from the Melrose Group by way of a demerger of shares in a new holding company (DemergerCo) to Melrose shareholders. The move will result in two separately listed companies, DemergerCo and Melrose Industries, with Melrose retaining ownership of GKN Aerospace. Subject to shareholder approval, the demerger is planned to take place in the first half of 2023.

DemergerCo is expected to become an independent automotive platform, owning both GKN Automotive and GKN Powder Metallurgy, and will act as an independent group with its headquarters in London. The company 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. It will have a dual strategy of profitable organic growth, as well as targeted M&A in the automotive sector.

The internal work under Melrose ownership to position the businesses to achieve stated margin targets for GKN Automotive and GKN Powder Metallurgy are expected to be completed this year. Simon Peckham and Geoffrey Martin will be executive directors of DemergerCo, as well as the 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 DemergerCo.

“Since acquiring GKN in 2018, we have reinvigorated each business to achieve its potential,” stated Justin Dowley, chairman of Melrose Industries PLC. “The proposed demerger now gives each an exciting opportunity to individually grow shareholder value through organic growth and acquisition in both platforms. Meanwhile, we remain on track to meet our full year 2022 expectations with full inflation recovery and providing good momentum for the intended demerger in the new year.”

Companies & MarketsNews
September 21, 2022

In the latest issue of PM Review…

Download PDF

Extensive Powder Metallurgy industry news coverage, and the following exclusive deep-dive articles and reports:

  • From powder modification to rejuvenation: Fluidised Bed Reactors in metal powder production and Additive Manufacturing
  • Retech: Enabling the atomisation of reactive and refractory alloys at substantially higher levels of productivity and lower cost
  • Sustainability in Powder Metallurgy: Highlights from the 41st Hagen Symposium
  • Innovations from Japan’s Powder Metallurgy industry: award winners highlight novel automotive and healthcare applications

The latest news from the world of metal powders, delivered to your inbox

Don't miss any new issue of PM Review, and get the latest industry news. Sign up to our weekly newsletter.

Sign up

Join our community

Discover our magazine archive…

The free-to-access PM Review magazine archive offers unparalleled insight into the world of Powder Metallurgy from a commercial and technological perspective through:

  • Reports on visits to leading PM part manufacturers, metal powder manufacturers and industry suppliers
  • Articles on technology and application trends
  • Information on materials developments
  • Reviews of key technical presentations from the international conference circuit
  • International industry news

All past issues are available to download as free PDFs or view in your browser.


Browse the archive


Looking for PM production equipment, metal powders, R&D support and more?

Discover suppliers of these and more in our
advertisers’ index and buyer’s guide, available in the back of PM Review magazine.

  • Powders & materials
  • Powder process, classification & analysis
  • PM products
  • Atomisers & powder production technology
  • Compaction presses, tooling & ancillaries
  • Sintering equipment & ancillaries
  • Post-processing
  • Consulting & toll sintering
View online
Share via
Copy link