Melrose Industries’ shares advanced more than 8% in late trading on Tuesday after the company said U.S. prosecutors closed their investigation into an incident at GKN Aerospace’s Garden Grove, California facility without filing criminal charges.
The surge followed a statement from Melrose on Aug. 25 confirming that the Orange County District Attorney’s Office had concluded its review and opted not to pursue charges related to the 2025 incident. The company said the decision removes a key overhang on its GKN unit, which operates the Garden Grove plant.
Melrose also outlined a compensation program offering up to $100 million to eligible claimants for costs tied to the evacuation order issued during the incident, including reimbursement for lost wages and loss of use. Public safety and emergency service costs are being handled separately and are not part of the program.
The Garden Grove facility, which employs about 500 people, manufactures and provides aftermarket support for advanced military and commercial aerospace components. GKN has deactivated the tank involved in the incident and implemented substantial safety improvements at the site, Melrose said.
Operations at the plant are expected to resume fully by the end of September, with customer deliveries restarting in the fourth quarter. The company had previously cited the incident as a factor in operational disruptions and financial impacts at the unit.
Melrose Industries, which owns GKN Aerospace, did not provide further details on the nature of the incident or the basis for the prosecutors’ decision to close the case.
