Renold Acquires Italian Chain Manufacturer Ognibene S.P.A.
Why we think this is good
The acquisition of Ognibene S.P.A. by Renold plc appears to be a positive strategic move that will enhance the company's presence in the Italian and broader Southern European market. The transaction is expected to be immediately accretive to Renold's earnings, and the company has identified synergies that should support a strong return on investment. While some financial details remain unquantified and the integration timeline is unclear, the overall strategic rationale and financial impact seem favorable.
Key Points
- Renold acquires Ognibene S.P.A., an Italian manufacturer and distributor of transmission chain and ancillary products
- Total cash consideration of €10 million for the acquisition
- Acquisition expected to immediately enhance Renold's adjusted earnings per share
- Acquisition to generate manufacturing synergies and improve Renold's customer service offering in Italy and Southern Europe
Summary
Renold plc, a leading international supplier of industrial chains and related power transmission products, has acquired the entire issued share capital of Ognibene S.p.a. for a total cash consideration of €10 million. Ognibene is a manufacturer and distributor of high-quality transmission chain and ancillary products, serving a range of end markets including packaging machinery, distribution and food processing. The acquisition is expected to immediately enhance Renold's adjusted earnings per share and deliver a return on investment above the company's WACC in the first year of ownership.