Manchester industrial chain and power transmission firm Renold plc said on Friday it has agreed to a £186.7 million takeover offer from MPE Bidco, a vehicle indirectly controlled by US private equity firm MPE Partners.
The offer is worth 82p per Renold share in cash. Renold shares rose about 11% to around 84p.
On May 20, Renold had confirmed it received two separate unsolicited and non-binding all-cash takeover proposals from a consortium comprising Buckthorn Partners LLP and One Equity Partners IX, L.P., and Webster Industries, Inc, a company majority-owned by a fund controlled by MPE.
MPE’s takeover offer on Friday represents a premium of 50% to the closing price per Renold ordinary share of 54.6p on May 19, 2025, the last business day prior to the commencement of the offer period on May 20.
MPE said it believes Renold will sit alongside Webster Industries, a portfolio company within its industrial platform, and represents a strategic step forward in Webster’s long-term vision “to build a global leader in automation, material handling, and power transmission solutions.”
Renold directors believe that the long-term potential of the Renold Group “has not been adequately reflected in the price and valuation rating of the Renold ordinary shares, which have fluctuated significantly in the past twelve months.”
Renold believes investor sentiment in the public markets, particularly towards UK smaller companies, “remains subdued” and, when set against the current elevated level of geopolitical and macroeconomic volatility “the Renold directors consider that potential for a sustained, material improvement in the valuation of Renold’s ordinary shares in the near term is likely to be limited.”
This would also “adversely impact its ability to access capital and drive further growth whilst remaining as a quoted company.”
Renold chairman David Landless said: “The Renold board believes that 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.”
MPE partner Constantine Elefter said: “We are extremely excited about the opportunity to partner with Renold, which we view as highly complementary to Webster.
“We believe the combination represents a compelling opportunity to significantly enhance the combined capabilities and opportunities for both companies, bringing together recognized industry brands and creating one of the leading players within the premium industrial chain industry.
“Both companies share a deep commitment to product quality, engineering innovation and customer service and we look forward to collaborating closely with Renold’s talented team to drive further growth and innovation, building on the strong foundation they have established.”