Acquisition

11 Mar 2005 07:00

Renold PLC11 March 2005 Renold plc Acquisition Renold acquires Sachs Automotive France SAS Following the announcement on 14 February 2005, Renold plc confirms that it hasreached agreement to acquire Sachs Automotive France SAS ("SAF") from ZF SachsAG for a nominal cash consideration. SAF, located and with a manufacturing facility at Saint Simeon de Bressieux nearGrenoble, employs 200 people and supplies automotive chain products to theEuropean aftermarket and a number of OEM's. For the year ended 31 December 2004, Sachs Automotive France recorded apre-exceptional operating loss of Euros 3.9 million and a statutory loss beforetax of Euros 7.8 million. Net assets at the year end, adjusted for a cashinjection to be made on completion and forgiveness of inter-company loans, wereEuros 16.9 million. It is expected that the acquisition will complete shortly. Bob Davies, Chief Executive of Renold plc, said: "This acquisition provides a base from which to build a European automotiveaftermarket business and provides high quality equipment and process technologywhich can be used to enhance Renold's existing automotive activities. SAF willbe restructured to become a viable business focused on the aftermarket. It willbe rapidly integrated into Renold's Automotive operations and will extend ourcapability to support this growing market sector." Enquiries: Bob Davies, Chief Executive ) 0161 498 4500Steve Mole, Finance Director ) This information is provided by RNS The company news service from the London Stock Exchange