Renold plc to acquire Aventics TC

Industrial chain supplier Renold plc has announced its intention to expand with the acquisition of Aventics Tooth Chain, a division of German pneumatics manufacturer Aventics Gmbh, for cash payments totalling up to €6.3m (£4.5m).

Manchester-based Renold signed a conditional sale and purchase agreement on the transaction to make an initial payment of €4.8m (around £3.4m), which will be followed with further payments of up to €1.5m (about £1.1m) over a two-year period.

The year ending December 31 2014 saw Aventics TC make an operating profit before exceptional items of €1.1m (£0.8m). Gross assets, at that point, stood at €1.7m (£1.2m).

Renold believes that, through the acquisition, it will be able to add a “high value-added product” to its range. Furthermore, the transaction could see Renold’s sales grow due to Aventics TC giving the firm access to a wider geographical market.

Renold chief executive Robert Purcell said: “The purchase of Aventics TC is an excellent fit with Phase 3 of our STEP 2020 Strategic Plan (the ‘Acquisitions’ Phase).

“Aventics TC manufactures a specialist, high quality product which will expand our existing product offering whilst Renold’s international footprint will, over time, give the tooth chain business access to new customers and geographies.”