Renold PLC (AIM:RNO) has agreed to a £187 million cash takeover by MPE Bidco, a company backed by US private equity firm MPE. The 82p-a-share offer values Renold at a 50% premium to Monday’s close and 96% above its recent 3-month average.
Investors cheered the deal, sending Renold’s shares up 11% to 84.41p, above the offer price.
The acquisition will see Renold, a leading maker of industrial chains and transmission systems, combine with MPE’s Webster Industries to create a global power transmission giant. Renold’s board is backing the deal, calling it a chance to realise immediate value and speed up growth.
"We are extremely excited about the opportunity to partner with Renold," said MPE partner Constantine Elefter.
Renold chairman David Landless said the deal delivers certainty and accelerates the execution of the company’s growth strategy.
"The offer not only represents a significant premium and provides shareholders with the certainty of a cash consideration but also provides an opportunity to deliver on our strategy more quickly," Landless added.
The acquisition is expected to be completed by late 2025, pending shareholder approval and regulatory clearances. Renold directors have already given irrevocable undertakings on 2.7% of the shares.