(Alliance News) - Renishaw PLC said on Wednesday it has decided to conclude its formal sales process after failing to receive a satisfactory takeover approach.
The Gloucestershire-based engineering and scientific technology firm put itself up for sale in March - triggered by Executive Chair David McMurtry and Non-Executive Deputy Chair John Deer, the company's founders, saying they wanted to sell their combined 53% stake.
Renishaw said its board had reviewed a number of proposals with its advisers, but board members now have unanimously concluded that "none would meet the board's objectives of delivering an outcome that satisfactorily met the interests of all stakeholders".
Back in May, Bloomberg had reported that potential bidders for Renishaw had been put off by a steep price tag and list of ownership demands. Bloomberg said Hexagon AB, Schneider Electric SE and Siemens AG all had taken a look.
Renishaw dropped out of the FTSE 100 index last month, demoted to the FTSE 250. Its current market capitalisation is GBP3.75 billion. The stock was up 1.5% early Wednesday at 5,150.00 pence but is down 11% so far in 2021.
In launching the sales process back in March, McMurtry and Deer, who together started Renishaw in 1973, had explained that they are both in their 80s and "neither of us is getting any younger".
However, on Wednesday, they said they remain committed to Renishaw and have no intention of selling their shares on the market for the foreseeable future.
"At the start of this process we made it very clear that, with the board, we were focused on ensuring that we find the right new owner for our business. Whilst the formal sale process did not result in a new owner for Renishaw, we are satisfied that it ensured a thorough and rigorous process that enabled us to evaluate a wide range of potential buyers," the two said.
They added: "We continue to enjoy good health and as we consider the future of our shareholdings in due course, we intend to follow an orderly process that continues to take into account the interests of all stakeholders."
Renishaw also said it saw a strong trading performance in its final quarter, and finished the financial year with a "record" order book. The company expects to report revenue for the year that ended June 30 in a range of GBP562 million to GBP567 million, and adjusted pretax profit of GBP116 million to GBP121 million. In financial 2020, Renishaw reported revenue of GBP510.2 million and pretax profit excluding exceptional items of GBP48.6 million.
At the halfway stage of financial 2021, Renishaw booked pretax profit of GBP63.9 million on GBP255.1 million in revenue.
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Renishaw (RSW)
