Renold PLC sells machine tool business

The sale includes manufacturers Jones and Shipman International, Leicester, the Renold machine tool business at Milnrow, Rochdale, Lancashire plus sales offices in France and the US. The business boasts some 250 employees. Venture Private Equity (previously called Venture Turnaround Ltd) is headquartered in Pall Mall, London. The company’s secretary is Mark Franckel, ex-president of Jones & Shipman, Farmington, Connecticut, US and previously sales director at Jones & Shipman, Leicester. Venture Private Equity's director is named as ex- Jones & Shipman employee Stephen Moon. Renold's divestment of its machine tools business is in line with the its board's strategy to focus on its core Industrial power transmission operations and follows the disposal of the automotive business which was announced in July this year. Total cash proceeds of sale are £6.1 million comprising an initial consideration of £4.25 million, received on completion, with a further £1.5 million be received in instalments commencing in February 2007 and ending in November 2007, plus £0.35 million from the net settlement of intra-group balances and cash balances transferred. Trade and contract bonds and guarantees of £1.7 million are expected to be assumed or discharged by year end. In addition, Renold has retained the right to a share of profits from any subsequent development of the Milnrow property. As at 30 September 2006, the value of the gross assets of the Renold Group's Machine Tools business was £5.2 million and for the financial year ended 31 March 2006, the operating loss of the Group's machine tools business was £100,000 on a turnover of £20 million.