Bullish indicating open at $55-$60, IPO prices at $37
LONDON - MPE Bidco, a newly-formed corporation controlled by funds managed by MPE Management Co., LLC, has agreed to acquire industrial chain manufacturer Renold plc (LSE:RNO) in a cash deal valuing the company at approximately £186.7 million, according to a press release statement issued Friday.
Under the terms of the recommended acquisition, Renold shareholders will receive 82 pence in cash for each ordinary share, representing a 50% premium to the closing price of 54.6 pence on May 19, 2025, the last business day before the offer period began.
The acquisition price also represents a 96% premium to Renold’s three-month volume weighted average share price of 41.9 pence ended May 19, 2025.
The Renold board has unanimously recommended that shareholders vote in favor of the scheme of arrangement. All Renold directors have provided irrevocable undertakings to vote their combined 2.7% shareholding in support of the deal.
MPE plans to combine Renold with its portfolio company Webster Industries, a U.S.-based manufacturer of engineered conveying and material handling solutions. The acquisition aims to create a global industrial chain and sprocket group with enhanced geographic reach and product offerings.
David Landless, Chairman of Renold, said the offer "represents a significant premium and provides shareholders with the certainty of a cash consideration" while offering "an opportunity to deliver on our strategy more quickly."
The transaction is subject to shareholder approval and other customary conditions. It is expected to close during the final quarter of 2025.
Renold, a designer and manufacturer of industrial chain and torque transmission products, reported revenue of £241.4 million and adjusted operating profit of £29.7 million for fiscal year 2024.
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