Renold plc announced that, since its announcement on 23rd November 2006, it has agreed upon terms for the sale of certain assets and liabilities of the goups machine tools business to Venture Private Equity. The transaction was completed on December 6.
The divestment of the machine tools business is in line with the Boards strategy to focus on its core industrial power transmission operations and follows the disposal of the automotive business, which was announced last July.
In addition, Renold has retained the right to a share of profits from any subsequent development of the Milnrow property.
As of last September, the value of the gross assets of the Groups Machine Tools business was $B!W(B5.2M. For the financial year ending March 31,2006, the operating loss of the Groups Machine Tools business was $B!W(B0.1M.