Renold, a leading international supplier of industrial chains and related power transmission products with 1.800 employees, 11 manufacturing plants and sales in more than 100 countries, was pleased to announce on the 4th August that it has acquired the entire issued share capital of Industrias YUK S.A.
- Established in 1964, YUK is a Valencia-based, manufacturer and distributor of high-quality conveyor chain (“CVC”) and ancillary products.
- YUK’s well invested CVC manufacturing facility, based near Valencia, Spain, adds a high quality European based CVC manufacturing capability to Renold’s current manufacturing capability in Europe.
- The acquisition substantially increases the Group’s access to the Iberian Chain market, where historically it has been underrepresented.
- Opportunities exist for meaningful manufacturing synergies between YUK and Renold’s current international operations.
- The Acquisition will allow Renold to leverage YUK’s strong CVC market position in Spain and Portugal to expand sales of the Group’s existing range of premium European TRC products and enable sales of YUK products throughout Renold’s extensive European sales network, beyond Iberia.
- The YUK management team, which brings many years of industry and market knowledge, will transfer to the Group on completion of the Acquisition, and continue to lead YUK, joining Renold’s European management team.
- The Acquisition is expected to be immediately enhancing to Group earnings per share, as well as accretive to the Group’s operating margin.
- ROIC is expected to be in line with management’s targets.
Commenting on the Acquisition, Robert Purcell, Group Chief Executive of Renold PLC, said:
“We are delighted that YUK is to join the Renold Group and that not only are we buying an excellent business, but also retaining the services of a very talented group of managers and employees. The acquisition of YUK considerably expands and strengthens our European Conveyor Chain offering, while also allowing us to grow within the Iberian market. YUK has a long-established track record of manufacturing and supplying high quality chain products which fit well with our own premium product offering. The acquisition is expected to be earnings enhancing from year one and gives rise to considerable business synergies. We are delighted to welcome the YUK team as part of the Renold family of companies.”
Our team will welcome all visitors to EPTDA’s convention in Warsaw, Poland, to come and talk with us. They will be pleased to meet you there and talk about further collaboration and developments.