8 June 2022

MELROSE INDUSTRIES PLC ("MELROSE" OR THE "COMPANY")

COMMENCEMENT OF £500 MILLION SHARE BUYBACK PROGRAMME

As part of its 2021 preliminary results announcement on 3 March, the Company announced it was keeping an intended capital return under review despite a strong performance during the year, citing world events and market uncertainty. 

With the announcement of the sale of Ergotron, the GKN Aerospace Capital Markets Event to be held later today and the Company's ongoing strong financial position, your Board is satisfied that it has sufficient certainty in order to commence a programme (the "Programme") to make market purchases of existing ordinary shares of 160/21 pence each in the capital of the Company ("Ordinary Shares") subject to the limits in this announcement.

In accordance with the Company's general authority to repurchase Ordinary Shares granted by its shareholders at the Annual General Meeting held on 5 May 2022 (the "General Authority"), the Programme will purchase no more than 437,242,947 Ordinary Shares and up to a maximum aggregate consideration payable by the Company of £500 million.  The Programme will commence tomorrow, 9 June 2022, and will end no later than 31 October 2022.  

The purpose of the Programme is to reduce the Company's share capital and it is intended that Ordinary Shares purchased shall be cancelled. Any purchases of Ordinary Shares by Melrose in relation to the Programme will be conducted in accordance with the General Authority, any further approvals to purchase shares as may be granted by its shareholders from time to time, the Market Abuse Regulation 596/2014 as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended), and Chapter 12 of the Listing Rules.

The Company has entered into irrevocable, non-discretionary instructions with Investec Bank plc ("Investec") and J.P. Morgan Securities plc (which conducts its UK investment banking business as JP Morgan Cazenove, "JP Morgan Cazenove") to conduct the Programme on its behalf and to make trading decisions under the Programme independently of Melrose.  The Programme will not impact the Company's existing Ordinary Share dividend policy, which will continue unaffected through the regular awards of interim and final dividends.

Simon Peckham, Chief Executive of Melrose, today said:

"Having agreed the sale of Ergotron, we are now in a position to again distribute capital to our shareholders and have chosen the quickest way to start to achieve that goal.  We will continue to keep under review the appropriate capital structure of Melrose as we position for continuing success." 

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