Renold backs PS187 million takeover offer from MPE
Renold PLC on Friday said it has agreed to a £186.7 million takeover by MPE Bidco, a vehicle indirectly controlled by US-based private equity firm MPE Mgt Co LLC, or MPE Partners, in a deal that values the industrial chain maker at 82 pence per share.
Renold shares rose 9.7% to 83.40 pence in London on Friday morning.
The Manchester, England-based supplier of industrial chains and related power-transmission products said the offer, which represents a 50% premium to Renold’s closing price on May 19, the day before the offer period began, has the backing of Renold’s board.
Directors holding a combined 2.7% stake have given irrevocable undertakings to vote in favour of the scheme.
MPE intends to combine Renold with its portfolio company Webster Industries Inc, aiming to create a global leader in automation, material handling, and power transmission. It said Renold’s international footprint, customer base, and engineering capabilities make it a natural fit with Webster.
Renold’s board said the deal offers shareholders an immediate cash return at a significant premium and faster access to growth capital, which may be harder to raise as a listed company.
‘The Renold board believes that the terms of the acquisition provide the opportunity for Renold shareholders to realise an immediate and certain cash value today for the entirety of their investment at a level which may not be achievable until the execution of Renold’s strategy is delivered over the medium to longer term, with that execution subject to a number of factors outside of Renold’s control,’ the company said.
The transaction will be implemented via a scheme of arrangement and is expected to be completed in the final quarter of 2025, subject to shareholder and court approval.
The offer comes after Renold confirmed in May that it had received two unsolicited and non-binding takeover approaches from private equity suitors. One bid, at 81p per share, came from a consortium of Buckthorn Partners LLP and One Equity Partners IX LP.
The other, at 77p, was from Webster Industries, which is majority-owned by a fund managed by MPE.
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