spot_img
Friday, March 29, 2024

Eversheds guides Renold´s €24m acquisition of YUK

Eversheds Sutherland Spain´s Corporate/M&A team has advised Renold Plc, a leading international supplier of industrial chains and power transmission related products, on the acquisition of the entire issued share capital of Industrias YUK S.A. for €24 million

-

Renold Plc, a leading international supplier of industrial chains and related power transmission products, has acquired the entire issued share capital of Industrias YUK S.A. for a total cash consideration of €24 million.

YUK is being acquired, subject to normal completion accounts adjustments, on a cash free, debt free basis, and will consist of an initial cash consideration of €20.0 million, followed by two further cash payments of €2.0 million each, payable 12 months and 24 months from the date of completion of the acquisition.

The total consideration for the Acquisition of €24.0 million represents an acquisition multiple of c. 7.6x June 2022 LTM EBITDA. Identified cost synergies will reduce the multiple comfortably below 7.0x, with additional benefits to be expected through commercial collaboration.

The Acquisition will be funded utilising the Group’s existing borrowing facilities. As at 31 March 2022, the Group’s net debt to EBITDA multiple was 0.6x and following completion of the Acquisition, is expected to remain below 1.5x. This allows the Group to retain sufficient headroom to execute on an identified pipeline of further bolt-on opportunities.

YUK delivered revenue of €18.6 million for the 12 month period ended June 2022, generating an EBITDA of €3.1 million.

 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.”

Eversheds Shutherland Spain advised Renold with a Corporate/M&A team led by partner Juan E. Díaz, together with of counsel David Williams and senior lawyer María Ramalle Quiñones.

- Advertisement -spot_img
- Advertisement -spot_img

MOST READ NEWS

Linklaters makes internal promotions in Madrid

After announcing the promotion of three partners and one counsel in Madrid, the firm has continued with its round of internal lawyer promotions, promoting...

BM assists AEW with two retail parks acquisition

AEW has been advised by Baker McKenzie on the acquisition of two prime retail parks in Spain: Rivas Futura, one of the largest prime...

Legal Dealmaker hosts a unique event that gathers more than 60 top Energy lawyers

With this event, Legal Dealmaker recognised the enormous talent and practice excellence in the Legal-Energy sector in Spain after this media selection, 'Top 100...
spot_img
spot_img
spot_img
spot_img
- Advertisement -spot_img
error: