Manchester industrial chain and power transmission firm Renold plc said on Wednesday it has acquired Bologna, Italy-based Ognibene S.p.a. for €10 million in cash.
On June 13, Renold said it agreed to a £186.7 million cash takeover offer from MPE Bidco, a vehicle indirectly controlled by US private equity firm MPE Partners.
Founded in 1948, Ognibene is a manufacturer and distributor of high-quality transmission chain (TRC) and ancillary products servicing a range of end markets, including packaging machinery, distribution and food processing.
“Ognibene is a leading supplier of transmission chain, while also offering a highly successful adapted chain capability to the local market,” said Renold.
“The acquisition increases the group’s access to the Italian, and wider Southern European market, allowing Renold to improve its customer service offering by accommodating local stocking of our complete chain range in Italy, which in turn will generate manufacturing synergies between Ognibene and Renold’s existing international operations.
“The Ognibene management team, which brings many years of industry and market knowledge, will transfer to the group following completion of the acquisition, and continue to lead the Ognibene business, joining Renold’s European management team.
“Following completion, the acquisition is expected to immediately enhance group adjusted earnings per share.
“ROIC is expected to be above Renold’s WACC in the first year of ownership.”
Ognibene reported revenue of €15.6 million for the 12 months ended December 2024, generating an EBITDA of €1.5 million, and a profit before tax of €1.3 million.
Renold CEO Robert Purcell said: “Ognibene is a fantastic business with an excellent reputation in the Italian and broader Southern European market, with whom we have had a relationship for over 30 years as an importer of Renold chain in Italy.
“This deal will allow us to deepen our presence in a key geographic market, while allowing increased production volumes in Renold’s international manufacturing operations.
“Ognibene represents our fourth chain acquisition in just over three years, and continues to demonstrate the momentum we have in identifying and executing value creative, bolt-on acquisitions. Our strong balance sheet and recently refinanced facilities will support further inorganic growth.”