Divestment of Machine Tools

7 Dec 2006 07:02

Renold PLC07 December 2006 7 December 2006 RENOLD plc Divestment of Machine Tools business Renold plc is pleased to announce that, since its announcement on 23rd November2006, it has agreed improved terms for the sale of certain assets andliabilities of the Group's Machine Tools business to Venture Private Equity. Thetransaction was completed on Wednesday, 6th December 2006. The divestment of the Machine Tools business is in line with the Board'sstrategy to focus on its core Industrial Power Transmission operations andfollows the disposal of the Automotive business which was announced in July thisyear. Total cash proceeds of sale are £6.1M comprising of an initial consideration of£4.25M which was received on completion, a further £1.5M which is to be receivedin instalments commencing in February 2007 and ending in November 2007 and£0.35M from the net settlement of intra-group balances and cash balancestransferred. Trade and contract bonds and guarantees of £1.7M are expected to beassumed or discharged by year end. In addition, Renold has retained the right to a share of profits from anysubsequent development of the Milnrow property. As at 30th September 2006, the value of the gross assets of the Group's MachineTools business was £5.2M and for the financial year ended 31st March 2006, theoperating loss of the Group's Machine Tools business was £0.1M. Enquiries: Renold plcBob Davies, Chief Executive 0161 498 4500Peter Bream, Finance Director Weber Shandwick Square MileTerry Garrett/Stephanie Badjonat 0207 067 0700 This information is provided by RNS The company news service from the London Stock Exchange