Street Calls of the Week
Investing.com -- Renold (LON:RNO) stock surged 10.8% after the company announced Friday it has reached an agreement with Bidco, a vehicle backed by private equity firm MPE, on the terms of a recommended cash acquisition.
Under the terms of the deal, Renold shareholders will receive 82 pence in cash for each ordinary share, valuing the company at approximately £186.7 million on a fully diluted basis.
The acquisition price represents a 50% premium to Renold’s closing price of 54.6 pence on May 19, 2025, and a 96% premium to the three-month volume weighted average price.
The acquisition is intended to be implemented through a scheme of arrangement under Part 26 of the Companies Act. Renold’s directors have unanimously recommended that shareholders vote in favor of the scheme.
MPE views the acquisition as a strategic move to position its portfolio company Webster Industries alongside Renold, creating a global leader in automation, material handling, and power transmission solutions.
The private equity firm believes Renold’s international presence will complement Webster’s strong U.S. footprint while enabling cross-selling opportunities and operational synergies.
Renold’s board cited the company’s limited ability to access growth capital through public markets as a key factor in accepting the offer, noting that the acquisition may provide improved access to flexible capital and support from Webster to achieve growth objectives faster than as a listed entity.
The transaction is expected to be completed during the final quarter of 2025, subject to shareholder approval and other customary conditions.