In a strategic strike across the Atlantic, MPE Partners, the Ohio-based private equity firm, has agreed to acquire Renold PLC, the venerable British industrial chain manufacturer, in a £186.7 million ($254 million) cash deal aimed at building a juggernaut in the global power transmission sector.
Backed by legal giants Jones Day for the buyers and Eversheds Sutherland for the sellers, this cross-border takeover, announced Friday, marks a pivotal shift in the competitive dynamics of the industrial chain market. It’s a calculated play designed to align Renold’s storied engineering pedigree with Webster Industries Inc., an MPE-owned U.S. manufacturer that makes similar products.
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The acquisition offers a 50% premium over Renold’s stock price of 54.6 pence before talks commenced on May 19, with MPE offering 82 pence per share. It’s a premium that Renold’s board called too good to pass up.
“This is more than a merger,” said Constantine Elefter, partner at MPE Partners. “It’s the fusion of legacy and momentum. Renold’s strengths perfectly complement Webster’s. Together, they can redefine what’s possible in the premium industrial chain arena.”
Indeed, both companies are recognized names in industrial chains and power transmission products—integral but often overlooked components in everything from conveyor systems to agricultural machinery.
