Acquisition of Sachs Automotive France SAS
Following the announcement on 14 February 2005, Renold plc confirms that it has reached agreement to acquire Sachs Automotive France SAS ("SAF") from ZF Sachs AG for a nominal cash consideration.
SAF, located and with a manufacturing facility at Saint Simeon de Bressieux near Grenoble, employs 200 people and supplies automotive chain products to the European aftermarket and a number of OEM's.
For the year ended 31 December 2004, Sachs Automotive France recorded a pre-exceptional operating loss of Euros 3.9 million and a statutory loss before tax of Euros 7.8 million. Net assets at the year end, adjusted for a cash injection to be made on completion and forgiveness of inter-company loans, were Euros 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 automotive aftermarket business and provides high quality equipment and process technology, which can be used to enhance Renold's existing automotive activities. SAF will be restructured to become a viable business focused on the aftermarket. It will be rapidly integrated into Renold's Automotive operations and will extend our capability to support this growing market sector."