24 June 2025

Renold plc

("Renold", the "Company" or the "Group")

Acquisition of Ognibene S.P.A.

Renold, a leading international supplier of industrial chains and related power transmission products, is pleased to announce that it has acquired the entire issued share capital of Ognibene S.p.a. ("Ognibene") for a total cash consideration of €10 million (the "Acquisition").

Highlights

·    Founded in 1948 and based in Bologna, Italy, 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.

·      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.

The Acquisition and Financial Considerations

Ognibene is being acquired on a cash free, debt free basis, and will consist of an initial cash consideration of €9 million, followed by a further cash payment of €1 million, payable 12 months from the anniversary of completion of the Acquisition. 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.

The Acquisition was funded utilising the Group's existing and recently refinanced borrowing facilities. Following completion of the Acquisition, the Group expects its net debt to EBITDA multiple to be within the Board's target range. With continuing expected strong cash generation, there remains sufficient facility headroom to execute further on an identified pipeline of bolt-on opportunities.

Ognibene reported revenue of €15.6 million for the twelve months ended December 2024, generating an EBITDA of €1.5 million, and a PBT of €1.3 million. Tangible net assets acquired, are anticipated to be €6.6 million.

Commenting on the Acquisition, Robert Purcell, Group Chief Executive of Renold plc, 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. We look forward to welcoming our new colleagues to the Renold Group."

ENQUIRIES:

NOTES FOR EDITORS

Renold is a global leader in the manufacture of industrial chains and also manufactures a range of torque transmission products which are sold throughout the world to a broad range of original equipment manufacturers and distributors. The Company has a well-deserved reputation for quality that is recognised worldwide. Its products are used in a wide variety of industries including manufacturing, transportation, energy, steel and mining.

Further information about Renold can be found on the website at: www.renold.com

Further information about Ognibene can be found on its website at:

https://www.ognibenechaintech.com/en