Capital tycoon says metals plant sale won't hit jobs

Published on Friday 2 December 2005 11:40

DAVID MURRAY, the Edinburgh-based business tycoon, said today that he sold his Newbridge-based Murray International Metals (MIM) unit because it was now a business with "limited growth potential".

He said none of the 60 jobs at the plant on the outskirts of the Capital would be affected by the 112 million sale of the operation and its subsidiary divisions to US-based private equity firm Jefferies Capital Partners (JCP).

In 2001, MIM accounted for 62 per cent of parent group Murray International Holdings' (MIH) turnover. But nowadays, that is down to around 28 per cent, responsible for sales of 172m out of total group revenues of close to 600m.

"It's a mature business with limited growth potential," said Mr Murray, explaining his decision to sell MIM, a once-flagship aspect of his business empire which is a specialist supplier of steel with established operations in the UK, US, Middle East, Far East, Australasia, and Latin America.

"It's a good business, but who knows where it's going to go," said Mr Murray. And he stressed there would be "no loss of jobs" as a result of the sale which is scheduled to complete no later than December 16. However, MIH will retain what it described as "minority interest" in the combined business.

JCP owns a majority shareholding in Edgen Corporation, a steel stockholding and trading company operating in the same sector as MIM in the US. And the combination of MIM and Edgen helps create a global business supplying speciality steel and alloy products to the oil and gas industry.

The sale followed an "unsolicited approach and offer" and Mr Murray said the deal represented an "excellent return" for MIH.

"Proceeds from the sale will be used to fund further investment and development of the group's existing businesses and the continued expansion of its trading interests," Mr Murray added.

Ken Cockburn will remain the managing director of MIM, but will retain involvement with MIH after the transaction as non- executive chairman of the Murray Metals portfolio of companies.