Renold agrees to £187m takeover from Webster Industries

(Sharecast News) - Industrial chain manufacturer Renold has reached an agreement regarding a £187m takeover from private equity firm Morgenthaler Private Equity, causing shares to surge on Friday. Last month, the company revealed that it had received two takeover proposals - one from a consortium comprising Buckthron Partners and One Equity Partners at 81p per share, and the other from Ohio-based Webster Industries, a company majority-owned by a fund managed and controlled by MPE, at 77p per share.

MPE has since sweetened its bid to 82p, representing a 50% premium to Renold's closing price before offer talks were reported, which Renold's board has now agreed to.

Renold chair David Landless said the offer "not only represents a significant premium and provides shareholders with the certainty of a cash consideration but also provides an opportunity to deliver on our strategy more quickly".

MPE said in a statement that Renold's portfolio or applications and engineering capabilities makes it "a natural fit with Webster", which specialises in engineered conveying, feeding, separation, screening and steel levelling solutions.

"MPE believes that Renold, under private ownership and when combined with Webster, will benefit from a broader long-term strategic focus and an optimised capital structure. MPE is committed to supporting Renold's management team in accelerating the company's growth trajectory, investing in innovation, and unlocking its full potential," the private equity firm said.

Renold shares were 8.7% higher at 82.6p by 0832 BST.