Potential Acquisition of Chain Business in India
Renold is pleased to announce that it is in discussions to acquire a 75% interest in the industrial chain business of L.G. Balakrishnan & Bros. Ltd ('LGB'). The remaining 25% interest in the business will be retained by LGB, a public company listed on the stock exchanges in India.
The business is based in Tamil Nadu, India. Successful completion of the transaction is dependent upon a number of factors, including regulatory and LGB shareholder approvals which are currently being sought and which as a consequence dictate the timing of this announcement.
This business, already the market leader for the production and distribution of industrial chains in India, would provide an established manufacturing base and sales distribution network. This network would enable Renold to promote its existing product range into India's rapidly growing market place as well as exploit new product, market and export opportunities.
This transaction would follow on from last year's successful acquisition and integration of Renold Hangzhou in China, which continues to make good progress.
Renold will announce its results for the year ended 31 March 2008 on Wednesday 25 June when it expects to confirm that these will be ahead of the market's expectations.
9 June 2008