Renold PLC Acquisition of Industrias YUK S.A.
RNS Number : 8559U
04 August 2022
4 August 2022
("Renold", the "Company" or the "Group")
Acquisition of Industrias YUK S.A.
Renold, a leading international supplier of industrial chains
and related power transmission products, is pleased to announce
that it has acquired the entire issued share capital of Industrias
YUK S.A. ("YUK"), (the "Acquisition") for a total cash
consideration of EUR24 million.
-- Established in 1964, YUK is a Valencia-based, manufacturer
and distributor of high quality conveyor chain ("CVC") and
-- YUK's well invested CVC manufacturing facility, based near
Valencia, Spain, adds a high quality European based CVC manufacturing
capability to Renold's current transmission ("TRC") and tooth
chain manufacturing capability in Europe.
-- The acquisition substantially increases the Group's access
to the Iberian Chain market, where historically it has been
-- Opportunities exist for meaningful manufacturing synergies
between YUK and Renold's current international operations.
-- The Acquisition will allow Renold to leverage YUK's strong
CVC market position in Spain and Portugal to expand sales
of the Group's existing range of premium European TRC products,
and enable sales of YUK products throughout Renold's extensive
European sales network, beyond Iberia.
-- The YUK management team, which brings many years of industry
and market knowledge, will transfer to the Group on completion
of the Acquisition, and continue to lead YUK, joining Renold's
European management team.
-- The Acquisition is expected to be immediately enhancing to
Group earnings per share, as well as accretive to the Group's
-- ROIC is expected to be in line with management's targets.
The Acquisition and Financial Considerations
YUK is being acquired, subject to normal completion accounts
adjustments, on a cash free, debt free basis, and will consist of
an initial cash consideration of EUR20.0 million, followed by two
further cash payments of EUR2.0 million each, payable 12 months and
24 months from the date of completion of the Acquisition.
The total consideration for the Acquisition of EUR24.0 million
represents an acquisition multiple of c. 7.6x June 2022 LTM EBITDA.
Identified cost synergies will reduce the multiple comfortably
below 7.0x, with additional benefits to be expected through
The Acquisition will be funded utilising the Group's existing
borrowing facilities. As at 31 March 2022, the Group's net debt to
EBITDA multiple was 0.6x and following completion of the
Acquisition, is expected to remain below 1.5x. This allows the
Group to retain sufficient headroom to execute on an identified
pipeline of further bolt-on opportunities.
YUK delivered revenue of EUR18.6m for the 12 month period ended
June 2022, generating an EBITDA of EUR3.1m million.
Commenting on the Acquisition, Robert Purcell, Group Chief
Executive of Renold plc, said:
"We are delighted that YUK is to join the Renold Group and that
not only are we buying an excellent business, but also retaining
the services of a very talented group of managers and employees.
The acquisition of YUK considerably expands and strengthens our
European Conveyor Chain offering, while also allowing us to grow
within the Iberian market. YUK has a long-established track record
of manufacturing and supplying high quality chain products which
fit well with our own premium product offering.
"The acquisition is expected to be earnings enhancing from year
one and gives rise to considerable business synergies. We are
delighted to welcome the YUK team as part of the Renold family of
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014), as it forms part of domestic law by
virtue of the European Union (Withdrawal) Act 2018) ("MAR") prior
to its release as part of this announcement and is disclosed in
accordance with the Company's obligations under Article 17 of those
Renold plc IFC Advisory Limited
Robert Purcell, Chief Executive Tim Metcalfe
Jim Haughey, Group Finance Director Graham Herring
0161 498 4500 020 3934 6630
Nominated Adviser and Joint Joint Broker
Peel Hunt LLP FinnCap Limited
Mike Bell Ed Frisby / Tim Harper (Corporate
Ed Allsopp Andrew Burdis / Harriet Ward
020 7418 8900 020 7220 0500
NOTES FOR EDITORS
Renold is a global leader in the manufacture of industrial
chains and also manufactures a range of torque transmission
products which are sold throughout the world to a broad range of
original equipment manufacturers and distributors. The Company has
a well-deserved reputation for quality that is recognised
worldwide. Its products are used in a wide variety of industries
including manufacturing, transportation, energy, steel and
Further information about Renold can be found on the website at:
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact email@example.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
(END) Dow Jones Newswires
August 04, 2022 02:00 ET (06:00 GMT)
Gráfica de Acción Histórica
De Ene 2023 a Feb 2023
Gráfica de Acción Histórica
De Feb 2022 a Feb 2023