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Renold PLC on Wednesday said it has bought transmission chain product supplier Ognibene Spa for a total cash consideration of €10 million. Bologna, Italy-based Ognibene is a manufacturer and distributor of transmission chain and ancillary products, including packaging machinery, distribution and food processing. Renold is a Manchester, England-based supplier of industrial chains and related power-transmission products. It said the deal increases its access to the Italian and wider southern European market. The acquisition allows Renold to improve its customer service offering by accommodating local stocking of its chain range in Italy, which will generate manufacturing synergies as well, it said. Ognibene’s management team will continue to lead the business, joining Renold’s European management team. The acquisition is expected to immediately enhance its adjusted earnings per share, Renold said. The deal consists of an initial cash consideration of €9 million, followed by a further payment of €1 million, 12 months after completion. ‘The group has identified a number of hard synergies it expects to achieve through integration, which would reduce the implied multiple appreciably and support delivery of a strong return on investment,’ it said. The acquisition is being funded by existing and recently refinanced borrowing facilities. For 2024, Ognibene reported earnings before interest, tax, depreciation and amortisation of €1.5 million and pretax profit of €1.3 million, on revenue of €15.6 million. The deal includes tangible net assets of €6.6 million. ‘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,’ said Chief Executive Robert Purcell. ‘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.’ Shares in Renold were up 0.3% at 80.80 pence in London on Wednesday afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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