Last checked at 9 Jun 2008 07:00
Renold plc
("Renold" or the "Group")
Potential acquisition of chain business in India
Renold is pleased to announce that it is in discussions to acquire a 75% interest in the industrial chain business of L.G. Balakrishnan & Bros. Ltd ('LGB'). The remaining 25% interest in the business will be retained by LGB, a public company listed on the stock exchanges in India.
The business is based in Tamil Nadu, India. Successful completion of the transaction is dependent upon a number of factors, including regulatory and LGB shareholder approvals which are currently being sought and which as a consequence dictate the timing of this announcement.
This business, already the market leader for the production and distribution of industrial chains in India, would provide an established manufacturing base and sales distribution network. This network would enable Renold to promote its existing product range into India's rapidly growing market place as well as exploit new product, market and export opportunities.
This transaction would follow on from last year's successful acquisition and integration of Renold Hangzhou in China, which continues to make good progress.
Renold will announce its results for the year ended 31 March 2008 on Wednesday 25 June when it expects to confirm that these will be ahead of the market's expectations.
9 June 2008
| Enquiries: | |
| Renold plc | 0161 498 4517 |
| Bob Davies, Chief Executive | |
| Peter Bream, Finance Director | |
| College Hill | 020 7457 2020 |
| Nicholas Potter | |
| Adam Aljewicz |
NOTES FOR EDITORS:
Renold plc is a global leader in the manufacture of industrial chains and a wide range of precision engineering products which are sold throughout the world to a broad range of original equipment manufacturers and distributors. Its products are used in a wide variety of industries including transportation, energy, steel, manufacturing and mining.
The company has a well deserved reputation for quality that is recognized worldwide.
The group has 13 manufacturing plants throughout the world and employs 2,500 staff. It is currently expanding its geographical footprint by increasing its manufacturing presence in "low cost countries".
In June 2007 the company completed the acquisition of a 90% interest in Hangzhou Shanshui, a chain manufacturer based in Hangzhou, China, 200 kilometres west of Shanghai.
For more information on Renold, visit www.renold.com