BOLOGNA Renold plc, a leading global supplier of industrial chains and power transmission products, has acquired Italian chain manufacturer Ognibene S.p.A. for €10 million in cash, the company announced Tuesday.
The acquisition strengthens Renold’s presence in Southern Europe and expands its manufacturing capabilities in the transmission chain market. Ognibene, founded in 1948 and based in Bologna, specializes in high-quality transmission chain (TRC) products for industries including packaging machinery, distribution and food processing.
The acquisition allows Renold to enhance its customer service in Italy by stocking a full range of chain products locally. The move is also expected to generate manufacturing synergies between Ognibene and Renold’s existing international operations.
Ognibene’s management team, which brings decades of industry expertise, will join Renold’s European leadership following the deal’s completion. The transaction is projected to immediately boost Renold’s adjusted earnings per share, with return on invested capital (ROIC) expected to exceed the company’s weighted average cost of capital (WACC) in the first year.
The deal includes an initial payment of €9 million, with an additional €1 million due 12 months after completion. Renold funded the acquisition through its existing borrowing facilities and expects its net debt-to-EBITDA ratio to remain within the board’s target range.
Ognibene reported €15.6 million in revenue for the 12 months ending December 2024, with earnings before interest, taxes, depreciation and amortization (EBITDA) of €1.5 million and profit before tax (PBT) of €1.3 million. The tangible net assets acquired are estimated at €6.6 million.
Robert Purcell, group chief executive of Renold, praised Ognibene as a “fantastic business with an excellent reputation.”
“Ognibene has been a trusted partner for over 30 years as an importer of Renold chain in Italy,” Purcell said. “This acquisition deepens our presence in a key market and increases production volumes across our international operations.”
He added that the deal marks Renold’s fourth chain acquisition in just over three years, reflecting the company’s strategy of pursuing bolt-on acquisitions to drive growth.
Renold, headquartered in Manchester, U.K., supplies industrial chains and power transmission products to more than 50 countries. The company operates manufacturing facilities in Europe, North America and Asia.
The acquisition is expected to close in the coming weeks, pending final regulatory approvals. Renold said it continues to explore additional bolt-on acquisition opportunities to expand its global footprint.
Renold plc (LSE: RNO) is a leading international supplier of industrial chains and power transmission products, serving industries such as manufacturing, mining and energy. With a history spanning more than 150 years, Renold operates in over 50 countries and employs approximately 2,000 people worldwide.
Founded in 1948, Ognibene S.p.A. is an Italian manufacturer and distributor of transmission chain products, specializing in customized solutions for packaging, food processing and distribution sectors. The company is headquartered in Bologna, Italy.