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Stockport based manufacturer, Renold Group, has announced its acquisition of Valencia-based Industrias YUK, a Spanish manufacturer and distributor of conveyor chains.
Renold, which has manufacturing sites in Bredbury and Wythenshawe, has acquired YUK for €24 million made up of an initial €20 million cash consideration, followed by two further €2 million payments 12 and 24 months after the completion of the deal. The deal has been funded using the manufacturer’s existing debt facilities.
YUK delivered revenue of €18.6m for the 12 month period ended June 2022, generating an EBITDA of €3.1m million.
The acquisition of YUK will help bolster sales in Europe for the Stockport manufacturer by significantly increasing its reach within the Spanish and Portuguese markets. The YUK management team, which brings many years of industry and market knowledge, will transfer to the Group on completion of the Acquisition, and continue to lead YUK, joining Renold’s European management team.
Commenting on the Acquisition, Robert Purcell, Group Chief Executive of Renold plc, said:
“We are delighted that YUK is to join the Renold Group and that not only are we buying an excellent business, but also retaining the services of a very talented group of managers and employees. The acquisition of YUK considerably expands and strengthens our European Conveyor Chain offering, while also allowing us to grow within the Iberian market. YUK has a long-established track record of manufacturing and supplying high quality chain products which fit well with our own premium product offering.
“The acquisition is expected to be earnings enhancing from year one and gives rise to considerable business synergies. We are delighted to welcome the YUK team as part of the Renold family of companies.”